/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070618.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, June 18, 2007, Vol. 11, No. 142 Headlines ACE AVIATION: Jazz Air Accepts Judge's Airport Access Ruling AEP INDUSTRIES: Earns $6.2 Million in Second Qtr. Ended April 30 AIRTRAN HOLDINGS: Three Nominees Elected to Midwest Board ALAN GOODMAN: Case Summary & 20 Largest Unsecured Creditors AMERICAN HOME: Moody's Rates Class III-PO Certificates at Ba1 AMERICAN UNITY: March 31 Balance Sheet Upside-Down by $1.1 Million AMERICREDIT AUTOMOBILE: S&P Withdraws BB Rating on Class E Notes AMP'D MOBILE: Selects Bayard Firm as Bankruptcy Counsel AMP'D MOBILE: Taps Sherwood Partners as Financial Advisors ANN TAYLOR: Weak Operating Trends Cue S&P to Revise Outlook ASARCO LLC: Can Employ CDM for Water Treatment Work ASARCO LLC: Asbestos Panel Taps Claro Group as Insurance Advisor ASHVIN SRIVASTAVA: Case Summary & 12 Largest Unsecured Creditors BAUSCH & LOMB: Warburg Pincus Buyout Raises Fears on Outsourcing BEST BRANDS: Moody's Cuts Corporate Credit Rating to B3 from B2 BIOTA BRANDS: Court Sets June 28 Hearing on Bankruptcy Status BON-TON STORES: Posts $29.3 Million Net Loss in Qtr Ended May 5 BRIDGEPORT CLO: S&P Prelim. Rates $19 Million Class D Notes at BB BRISTOW GROUP: Completes $300 Million Sr. Notes Private Offering CALPINE CORP: Melissa Brown Promoted to Senior Vice-President CANARGO ENERGY: Completes $15MM Debt Conversion & Restructuring CHARLES REYES: Case Summary & 16 Largest Unsecured Creditors CLEVELAND-CLIFFS: Agrees to Buy PinnOak for $450 Million in Cash COMMERCIAL MORTGAGE: S&P Lowers Rating on Class H Certs. to B- CONSECO INC: Moody's Rates $200 Mil. Sr. Credit Facility at Ba3 CREDIT SUISSE: Moody's Rates 2005-TFL2 Class L Certs. at Ba1 CREDIT SUISSE: Moody's Rates Six 2005-C3 Cert. Classes at Low-B DAIMLERCHRYSLER: Chrysler to Invest $450MM in Kenosha Engine Plant DAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say DAIMLERCHRYSLER: Chrysler Workers Seeking Buyouts Exceed Plan DAIMLERCHRYSLER AG: Thomas Sidlik Leaves Board of Management DEL MONTE: Earns $36.7 Million in Fourth Quarter Ended April 29 DOBI MEDICAL: Case Summary & 20 Largest Unsecured Creditors DURA AUTOMOTIVE: Wants to Amend Terms of $300 Million DIP Facility EARTH BIOFUELS: Posts $25.5 Mil. Net Loss in Qtr. Ended March 31 EUGENIE BROUSSARD: Voluntary Chapter 11 Case Summary FHC HEALTH: S&P Places B Credit Rating on Negative CreditWatch FISHER COMMS: S&P Puts B- Credit Rating Under Positive CreditWatch FORD MOTOR: Joins GM & Chrysler in Healthcare Fund, Sources Say FORD MOTOR: Inks MOU Selling ACH Sandusky Plant to Meridian Auto GENERAL MOTORS: Joins Chrysler & Ford in Healthcare Fund HOLLINGER INC: Dec. 31 Balance Sheet Upside-down by $73.3 Million HSI ASSET: Moody's Rates Class M-10 Certificates at Ba1 ICONIX BRAND: Moody's Rates Proposed $250 Mil. Sr. Notes at B3 INTERPUBLIC GROUP: Provides Update on SEC Investigation J.P. MORGAN: Moody's Rates Five Certificate Classes at Low-B JOE SIVE: Case Summary & Two Largest Unsecured Creditors JOSEPH THOMAS: Case Summary & 20 Largest Unsecured Creditors LJVH HOLDINGS: Moody's Junks Rating on Proposed $125 Mil. Loan M. FABRIKANT: Employs P. Solomon Company as Financial Advisor MYRNA SEGUNDO: Case Summary & Seven Largest Unsecured Creditors NELSON EDUCATION: Moody's Puts Corporate Credit Rating at B2 NELSON EDUCATION: S&P Junks Rating on Planned CDN$181.5MM Loan NEW CENTURY: Court Okays FTI as Committee's Financial Advisor NEW CENTURY: Court Okays Hahn & Hessen as Committee's Counsel ORCHESTRA THERAPEUTICS: Mar. 31 Balance Sheet Upside-Down by $10MM PENN TREATY: S&P Holds B Ratings and Retains Negative CreditWatch PEOPLE'S CHOICE: Wants August 31 Set as General Claims Bar Date PHILLIPS-VAN: Good Performance Cues S&P's Positive CreditWatch RBCE INVESTMENT: Voluntary Chapter 11 Case Summary REMY INTERNATIONAL: To File Prepackaged Chapter 11 Protection RESMAE MORTGAGE: Exits from Chapter 11 Bankruptcy Protection RIM SEMICONDUCTOR: April 30 Balance Sheet Upside-down by $1.6 Mil. RONALD BARNETT: Voluntary Chapter 11 Case Summary RONCO CORPORATION: Files for Protection Under Chapter 11 RONCO CORP: Case Summary & 24 Largest Unsecured Creditors SAMSONITE CORP: April 30 Balance Sheet Upside-Down by $224.7 Mil. SANMINA-SCI: Posts $26.1 Million Net Loss in Qtr Ended March 31 SIERRA PACIFIC: Moody's May Lift Ba2 Credit Rating After Review SOLSTICE ABS: S&P Places B Rating on Class C Notes on Neg. Watch SOLUTIA INC: Court Sets July 10 Disclosure Statement Hearing SPECIALTY RESTAURANT: Hires MGLAW PLLC as Local Counsel ST. MARY: Closes $29.5 Million South Texas Acquisition STATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good Performance STRATUS TECH: Moody's Withdraws Ratings on Company's Request SUNRISE SENIOR: Millennium Partners Wants Management Replaced TWEETER HOME: Receives Nasdaq Delisting Notice VINCENT MITCHELL: Voluntary Chapter 11 Case Summary WIKI WIKI: Case Summary & 20 Largest Unsecured Creditors WILLOW RE: S&P Rates $250 Mil. Series 2007-1 Class B Notes at BB+ WOODWIND & BRASSWIND: Trustee Hires Baker as Special Counsel XERIUM TECH: Eduardo Fracasso Promoted as Brazilian Unit President YOUNG MIN CHOE: Voluntary Chapter 11 Case Summary ZIFF DAVIS: S&P Withdraws Rating at Company's Request * BOND PRICING: For the week of June 11 - June 15, 2007 ********* ACE AVIATION: Jazz Air Accepts Judge's Airport Access Ruling ------------------------------------------------------------ Jazz Air LP, a unit of ACE Aviation Holdings Inc., welcomed the decision made by the Honorable James Hugessen of the Federal Court of Canada, to allow Air Canada Jazz's appeal in its action against the Toronto Port Authority to gain fair and equal access to the Toronto City Centre Airport. Justice Hugessen reversed the order dismissing the judicial review application and Air Canada Jazz's action will now be heard on its merits. Air Canada Jazz is gratified that the case will be heard based on the merits and will proceed with this action expeditiously. Air Canada Jazz looks forward to resuming service at the Toronto City Centre Airport and calls on the Toronto Port Authority to work with Air Canada Jazz to re-establish the fundamental principle of free and equal access to public facilities. ACE Aviation Holdings Inc. -- http://www.aceaviation.com/-- is the parent holding company of Air Canada, Aeroplan, Jazz, Air Canada Technical Services, Air Canada Vacations, Air Canada Cargo, and Air Canada Ground Handling Services. * * * As reported in the Troubled Company Reporter on April 3, 2007, Dominion Bond Rating Service confirmed ACE Aviation Holdings' Senior Unsecured Convertible Notes and Senior Unsecured Debt at B (high) with a Stable trend. DBRS expects the rating to remain steady amid solid performance of its underlying portfolio of businesses and strong liquidity due to a well-executed divestiture strategy. Despite this, the rating continues to be hampered by structural challenges facing the airline industry and uncertainty related to ACE's portfolio going forward. AEP INDUSTRIES: Earns $6.2 Million in Second Qtr. Ended April 30 ---------------------------------------------------------------- AEP Industries Inc. reported financial results for its fiscal second quarter ended April 30, 2007. Net sales decreased 3% in the second quarter of fiscal 2007 to $187.8 million compared with $193.3 million in the second quarter of fiscal 2006, despite a 9% increase in sales volume. The decrease is primarily the result of a 12% decrease in average selling prices, driven by lower resin costs. The effect of foreign exchange on net sales in the 2007 period was a net positive $2.6 million, primarily reflecting the impact of the strengthened Euro. Net income for the three months ended April 30, 2007, was $6.2 million, as compared to $18.2 million in the second quarter of 2006. For the first six months of fiscal 2007, net sales decreased $18.9 million or 5% to $367.1 million compared with $386 million in the same period last year. The decrease in net sales was the result of a 13% selling price decrease resulting from resin price decreases mitigated by a sales volume increase of 8% combined with the net positive impact of foreign exchange of $5 million, primarily reflecting the impact of the strengthened Euro. Net income for the six months ended April 30, 2007 was $16.8 million as compared to $18.4 million in 2006. Balance Sheet Data and Liquidity The company ended the first half of fiscal 2007 $342.3 million in total assets, $269 million in total liabilities, and $73.3 million in total stockholders' equity as of April 30, 2007. The company had with a net debt position of $178.9 million, compared with $192.5 million at the end of fiscal 2006. Working capital amounted to $102.3 million at April 30, 2007, compared to $85.5 million at Oct. 31, 2006. The increase in working capital of $16.8 million was substantially due to an increase in inventories resulting primarily from our increased investment in raw materials, a decrease in accrued expenses, primarily from bonus payments accrued at Oct. 31, 2006, and made in December and January 2007, and a decrease in short term borrowings of our foreign operations. The company believes its cash and cash equivalents on hand at April 30, 2007, and its cash flow from operations, combined with the availability of funds under its credit facility and credit lines available to its foreign subsidiaries for local currency borrowings, will be sufficient to meet its working capital, capital expenditure and debt service requirements for at least the next 12 months. At April 30, 2007, the company had an aggregate of $129.7 million available under its various credit facilities. A full-text copy of the company's second quarter 2007 report is available for free at http://ResearchArchives.com/t/s?20f9 "We are pleased to note that year-to-date income from continuing operations improved an impressive $3.6 million over the prior year, sales volume increased a substantial 8% and basic earnings per share from continuing operations increased $0.59 over the prior year to $2.13 per share," stated Brendan Barba, chairman and chief executive officer of the company. "Our confidence in and commitment to our company and its future remains strong and are evidenced by our continuing purchases of our own stock." About AEP Industries AEP Industries Inc. (Nasdaq: AEPI) -- http://www.aepinc.com/-- manufactures and markets plastic packaging films, including polyethylene, polyvinyl chloride and polypropylene flexible packaging products for the industrial and agricultural applications. AEP operates in eight countries in North America, Europe and Asia Pacific. On Feb. 10, 2005, the company disposed off AEP Industries Packaging France SAS and on March 25, 2005, the Group disposed off Termofilm SpA. On Feb. 23, 2006, the company acquired Mercury Plastics Inc. * * * AEP Industries Inc. carries Moody's Investors Service's Ba3 long-term corporate family rating, B1 senior unsecured debt rating, and Ba3 probability-of-default rating. The outlook remains stable. The company also carries Standard & Poor's B+ long-term foreign and local issuer credit ratings. The outlook is positive. AIRTRAN HOLDINGS: Three Nominees Elected to Midwest Board --------------------------------------------------------- AirTran Holdings, Inc. disclosed that preliminary voting tabulations conducted by its proxy solicitor, Innisfree M&A Incorporated, indicate that AirTran's three nominees -- John Albertine, Jeffrey Erickson, and Charles Kalmbach -- have been elected to replace three of Midwest's incumbent directors on the Midwest board and received an estimated 65% of shares voted. According to Midwest, certification of the results by the independent inspectors of election, IVS Associates, is expected to be announced on June 26, 2007, following which it is expected that the directors-elect will become members of the Midwest Board. "This is an important victory for all Midwest shareholders," Joe Leonard, AirTran's chairman and chief executive officer, said. "There is clearly a strong desire among Midwest shareholders for positive corporate governance change and for Midwest to fully and fairly consider the merits of a combination with AirTran. We believe these three new directors will bring a fresh, independent perspective to the Midwest board and will encourage the board to fully explore its strategic options, including sitting down with us to fully evaluate how a merger with AirTran can provide greater value for the Midwest shareholders, employees and customers." AirTran Airways, Inc. (NYSE: AAI) -- http://www.airtran.com/-- operates over 600 daily flights to 50 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, where it is the second largest carrier. AirTran Airways recently added the fuel-efficient Boeing 737-700 aircraft to create America's youngest all-Boeing fleet. The airline is also the first carrier to install XM Satellite Radio on a commercial aircraft and the only airline with Business Class and XM Satellite Radio on every flight. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on AirTran Holdings Inc. and its primary operating subsidiary, AirTran Airways Inc., including the 'B-' corporate credit rating on AirTran Holdings. As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service confirmed its B3 Corporate Family Rating for AirTran Holdings Inc. and its Caa1 rating on the company's 7.0% Guaranteed Convertible Notes Due July 1, 2023, in connection with its implementation of its Probability-of-Default and Loss- Given-Default rating methodology for the Transportation sector. Moody's also assigned an LGD6 rating to those loans, suggesting noteholders will experience a 91% loss in the event of a default. ALAN GOODMAN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Alan Goodman 1 Ethan Drive Farmingdale, NJ 07727 Bankruptcy Case No.: 07-17876 Chapter 11 Petition Date: June 5, 2007 Court: District of New Jersey (Trenton) Judge: Raymond T. Lyons Jr. Debtor's Counsel: Jeannette A. Hoffman, Esq. Engleman and Hoffman 99 Highway 35, P.O. Box 257 Keyport, NJ 07735 Tel: (732) 264-1956 Total Assets: $1,582,500 Total Debts: $2,467,507 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Countrywide Home Loans bank loan; value $187,500 P.O. Box 5170 of collateral: Simi Valley, CA 93062 $929,000 Universal Supply Corp. $152,000 c/o Bart J. Klein, Esq. 2066 Millburn Avenue Maplewood, NJ 07040 Yellow Book Mid-Atlantic, $89,000 L.P. 398 Reckson Plaza Uniondale, NY 07040 Internal Revenue Service $71,000 Aurora Loan Services bank loan; value $70,000 of collateral: $929,000 Idearc Media Corp. $53,300 Freehold Cartage $37,200 Levin Cyphers Attorneys $28,400 of Law Standard Roofing, Inc. $28,400 Standard Group $28,100 Wachovia bank loan $28,000 G.E. Money Bank $27,200 Wachovia Bank N.A. $23,600 New Jersey State Division $20,000 of Taxation Commercial Enterprises, $15,000 L.L.C. Home Depot Mastercard $12,000 Traveler's Indemnity and $10,900 Affiliates Fahy Choi, L.L.C. $10,000 Home Depot Mastercard $4,900 Home Depot Credit Services $4,600 AMERICAN HOME: Moody's Rates Class III-PO Certificates at Ba1 ------------------------------------------------------------- Moody's Investors Service assigned a Aaa rating to the senior certificates issued by American Home Mortgage Assets Trust 2007-3, and ratings ranging from Aa1 to Ba1 to the subordinate certificates in the deal. The Group I certificates are backed by adjustable-rate first lien residential mortgage loans. The ratings are based primarily on the credit quality of the loans and on the protection against credit losses provided by subordination, overcollateralization, excess spread, an interest rate cap, an interest rate swap and a lender paid mortgage insurance. Moody's expects collateral losses in Group I to range from 1.15% to 1.35%. The Group II certificates are backed by fixed-rate first lien residential mortgage loans. The ratings are based primarily on the credit quality of the loans and on the protection against credit losses provided by subordination, excess spread, a lender paid mortgage insurance and overcollateralization. Moody's expects collateral losses in Group II to range from 1.00% to 1.20%. The Group III certificates are backed by fixed-rate closed end junior lien residential mortgage loans. The ratings are based on the credit quality of the loans and on the protection against credit losses provided by subordination, overcollateralization, excess spread and an interest rate cap agreement. The ratings for Class III-A-1 and Class III-A-2 certificates also benefit from financial guaranty insurance policy issued by Assured Guaranty Corp., whose financial strength is rated Aa1 by Moody's. Moody's expects collateral losses to range from 9.25% to 9.75%. American Home Mortgage Servicing, Inc. will service the loans and Wells Fargo N.A. will act as master servicer. Moody's has assigned Wells Fargo N.A. its top servicer quality rating of SQ1 as a master servicer. The complete rating actions are: * American Home Mortgage Assets Trust 2007-3 * Mortgage-Backed Pass-Through Certificates, Series 2007-3 Class I-1A-1, Assigned Aaa Class I-1A-2, Assigned Aaa Class I-2A-1, Assigned Aaa Class I-2A-2, Assigned Aaa Class I-M-1, Assigned Aa2 Class I-M-2, Assigned A2 Class I-M-3, Assigned Baa3 Class II-1A-1, Assigned Aaa Class II-1A-2, Assigned Aaa Class II-2A-1, Assigned Aaa Class II-2A-2, Assigned Aaa Class II-M-1, Assigned Aa2 Class II-M-2, Assigned Aa3 Class II-M-3, Assigned A2 Class II-M-4, Assigned A3 Class II-M-5, Assigned Baa2 Class II-M-6, Assigned Baa3 Class III-A-1, Assigned Aaa Class III-A-2, Assigned Aa1 Class III-M-1, Assigned A2 Class III-M-2, Assigned A3 Class III-PO, Assigned Ba1 AMERICAN UNITY: March 31 Balance Sheet Upside-Down by $1.1 Million ------------------------------------------------------------------ American Unity Investments Inc. reported a net loss of $230,407 for the first quarter ended March 31, 2007, compared with a net loss of $171,841 for the same period ended March 31, 2006. From April 1, 2006, to Sept. 30, 2006, revenues almost entirely consisted of resale of forestry property and sales of forestry products from the People's Republic of China. The company discontinued the forestry business in the last quarter of 2006 and had no revenues after Sept. 30, 2006. The company is investigating other businesses, including acquisitions, in the People's Republic of China. At March 31, 2007, the company's balance sheet showed $2,051,286 in total assets and $3,180,137 in total liabilities, resulting in a $1,128,851 total stockholders deficit. The company's balance sheet at March 31, 2007, also showed strained liquidity with $1,835,519 in total current assets available to pay $2,828,450 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?20e8 Going Concern Doubt David M. K. Yeung & Co., in Hong Kong, expressed substantial doubt about American Unity Investments Inc.'s ability to continue as a going after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that the company has recurring net losses and an accumulated deficit of $2,156,814 as of Dec. 31, 2006. Accumulated deficit at March 31, 2007, increased to $2,387,221. About American Unity Headquartered in New York, American Unity Investments Inc. (OTC BB: AUNI) -- http://www.ameriunity.com/-- is a global investment company which is investigating business opportunities, including acquisitions, in the People's Republic of China. The company also maintains a head office in Beijing. AMERICREDIT AUTOMOBILE: S&P Withdraws BB Rating on Class E Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on six classes of notes from AmeriCredit Automobile Receivables Trust's series 2004-1 and 2005-1 and removed them from CreditWatch with positive implications, where they were placed on May 14, 2007. At the same time, S&P withdrew its 'BB' rating on class E from series 2005-1 because the class paid down completely. The rating actions primarily reflect the strong performance of the underlying collateral pools of subprime automobile loan receivables originated and serviced by AmeriCredit Financial Services Inc., a wholly owned subsidiary of AmeriCredit Corp. (BB- /Stable/--), combined with increased credit enhancement as a percentage of the current pool balances, which can be used to cover losses. As of the April 2007 distribution date, series 2004-1 and 2005-1 had 34 and 24 months of performance, respectively, and had collateral pool balances that represented 24.42% and 39.96% of their initial balances. Each transaction contains a nondeclining, fully funded reserve account of 2% of its initial pool balance that continues to grow as a percent of its current amortizing pool balance, as well as a turbo allocation feature whereby excess spread is used to pay down the class E certificates. The class E certificates from each deal have been paid down completely, increasing the level of overcollateralization to the overall cap of 30% of the current pool balance for series 2004-1 and to 28.76% of the current pool balance for series 2005-1. Current cumulative net losses are below Standard & Poor's initial expectations, while cumulative recovery rates for the two trusts are currently above 40%, consistent with our initial expectations. Additionally, each trust contains a sequential pay structure that has increased the amount of subordination as a percent of its amortizing pool balance. Standard & Poor's believes the remaining credit support will be sufficient to support the notes at their new rating levels. Ratings Raised and Removed from Creditwatch Positive AmeriCredit Automobile Receivables Trust 2004-1 Rating ------ Class To From ----- -- ---- B AAA AA/Watch Pos C AAA A/Watch Pos D AAA BBB/Watch Pos AmeriCredit Automobile Receivables Trust 2005-1 Rating ------ Class To From ----- -- ---- B AAA AA/Watch Pos C AAA A/Watch Pos D AAA BBB/Watch Pos Rating Withdrawn AmeriCredit Automobile Receivables Trust 2005-1 Rating ------ Class To From ----- -- ---- E NR BB/Watch Pos NR - Not rated. AMP'D MOBILE: Selects Bayard Firm as Bankruptcy Counsel ------------------------------------------------------- Amp'd Mobile Inc. asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ The Bayard Firm as its bankruptcy counsel, nunc pro tunc to June 1, 2007. Bayard is expected to provide bankruptcy advice, including assistance in the preparation of the requisite petitions, pleadings, exhibits, lists and schedules in connection with the Debtor's Chapter 11 case. Specifically, Bayard will: (a) take all necessary actions to protect and preserve the Debtor's estate, prosecute actions on the Debtor's behalf, defend any actions commenced against the Debtor, negotiate disputes in which the Debtor is involved and prepare objections to claims filed against the Debtor's estate; (b) provide legal advice with respect to the Debtor's powers and duties as debtor-in-possession in the continued operation of its business and management of its properties; (c) negotiate, prepare and pursue confirmation of a plan of reorganization and approval of a disclosure statement; (d) prepare, on the Debtor's behalf, necessary motions, applications, answers, orders, reports and other legal papers in connection with the administration of the Debtor's estate; (e) appear in Court and protect the Debtor's interest before the Court; and (f) assist with any disposition of the Debtor's assets, by sale or otherwise. The Debtor will pay Bayard according to the firm's customary hourly rates: Professional Hourly Rates ------------ ------------ Directors $440 to $675 Associates and Counsel $205 to $415 Paralegals & Case Management Assistants $180 to $85 The Debtor will also reimburse Bayard for any necessary out-of- pocket expenses the firm incurs while providing services for the Debtor. Steven M. Yoder, Esq., a director and shareholder of Bayard, assures the Court that his firm does not represent any interest adverse to the Debtor and its estate, and is a ?disinterested person? as the term is defined under Section 101(14) of the Bankruptcy Code. Mr. Yoder discloses that Bayard may have been or may be currently representing these parties, among others, in matters unrelated to the Debtor's case: * ADT, * AT&T, * BAX Global, * CDW, * Circuit City, * Let's Talk, * Major League Baseball, * Motorola, * Sony BMG Music, * Sprint PCS, * Verizon Wireless, and * Warner Bros. Mr. Yoder also discloses that on June 1, 2007, the Debtor sent Bayard a $35,000 retainer through wire transfer. About $11,436 of the Retainer was drawn to pay for Bayard's prepetition fees and expenses. A balance of $23,563, which will be applied to future fees and expenses, remains in the Debtor's client trust account. Headquartered in Los Angeles, Calif., Amp'd Mobile Inc. aka Amp'D Mobile LLC -- http://www.ampd.com/-- is a mobile virtual network operator that provides voice, text and entertainment content to subscribers who contract for cellular telephone service. The company filed for chapter 11 protection on June 1, 2007 (Bankr. D. Del. Case No. 07-10739). Steven M. Yoder, Esq., Eric M. Sutty, Esq. and Mary E. Augustine, Esq. at The Bayard Firm represent the Debtor in its restructuring efforts. When it sought bankruptcy, Amp'D Mobile listed total assets of between $1 million to $100 million and estimated debts of more than $100 million. The Debtor's exclusive period to file a plan expires on Sept. 29, 2007. (Amp'd Mobile Bankruptcy News, Issue No. 4; Bankruptcy Creditors'Service Inc. http://bankrupt.com/newsstand/ or 215/945-7000) AMP'D MOBILE: Taps Sherwood Partners as Financial Advisors ---------------------------------------------------------- Amp'd Mobile Inc. seeks authority from the U.S. Bankruptcy Court for the District of Delaware to employ Sherwood Partners LLC as its financial advisor, nunc pro tunc to June 1, 2007. Sherwood is expected to: (a) assist the Debtor in preparing and filling financial documents or reports; (b) assist the Debtor with determining whether or not its business is viable on a going forward basis; (c) assess the Debtor's postpetition finances, including its revenues and its disbursements; (d) assist the Debtor in preparing cash flows, which accompany its cash collateral motion as well as those in support of a DIP financing or plan of reorganization; (e) advise the Debtor with regard to the financial viability of any reorganization plan; (f) review the performance of the Debtor's management; (g) participate in discussions with Debtor's counsel, as necessary; (h) meet with the Debtor's representatives and representatives of important constituents including the Debtor's secured creditor, Kings Road Investment, Ltd., its financial advisors and any other significant creditors or parties as necessary; (i) analyze and advise the Debtor regarding proposed sales of any assets; and (j) assist the Debtor with regard to litigation and contested matters that arise in the bankruptcy case including assistance to the Debtor on matters that the Debtor commences. The Debtor intends to employ five Sherwood professionals and pay those professionals in accordance with the firm's hourly rates: Michael A. Maidy $500 Andrew De Camara $400 Neal Gluckman $400 Edward Traum $400 Tim Cox $300 The Debtor may hire more Sherwood professionals as deemed necessary. The Debtor has agreed to indemnify Sherwood under certain circumstances. Mr. Maidy, president of Sherwood, assures the Court that his firm does not represent any interest adverse to the Debtor and its estate, and is a ?disinterested person? as the term is defined under Section 101(14) of the Bankruptcy Code. Headquartered in Los Angeles, Calif., Amp'd Mobile Inc. aka Amp'D Mobile LLC -- http://www.ampd.com/-- is a mobile virtual network operator that provides voice, text and entertainment content to subscribers who contract for cellular telephone service. The company filed for chapter 11 protection on June 1, 2007 (Bankr. D. Del. Case No. 07-10739). Steven M. Yoder, Esq., Eric M. Sutty, Esq. and Mary E. Augustine, Esq. at The Bayard Firm represent the Debtor in its restructuring efforts. When it sought bankruptcy, Amp'D Mobile listed total assets of between $1 million to $100 million and estimated debts of more than $100 million. The Debtor's exclusive period to file a plan expires on Sept. 29, 2007. (Amp'd Mobile Bankruptcy News, Issue No. 4; Bankruptcy Creditors'Service Inc. http://bankrupt.com/newsstand/ or 215/945-7000). ANN TAYLOR: Weak Operating Trends Cue S&P to Revise Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on New York City-based Ann Taylor Inc. to stable from positive. S&P are also affirming the 'BB-' corporate credit rating on the company. "The outlook change reflects recent weak operating trends," said Standard & Poor's credit analyst Jackie E. Oberoi, "including two quarters of negative comparable-store sales and declining EBITDA levels compared with a year ago." The rating reflects high business risk at ANN because of its participation in the highly competitive and fashion-sensitive specialty women's apparel industry, historically inconsistent operating performance, and the fast-growth strategy of the Ann Taylor Loft business. ANN is the wholly owned operating subsidiary of Ann Taylor Stores Corp. ASARCO LLC: Can Employ CDM for Water Treatment Work --------------------------------------------------- ASARCO LLC and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the Southern District of Texas to hire CDM to perform water treatment work on certain of its properties. As reported in the Troubled Company Reporter on May 25, 2007, the Debtors and Camp Dresser McKee Inc., a consulting, engineering, construction, and operations firm are parties to a Professional Services Agreement dated September 2003. Pursuant to the Agreement, CDM will prepare and ASARCO will approve a specific scope of services and fee schedule for each scope of work. ASARCO can retain CDM in connection with these projects: Estimated Location Nature of Work Cost -------- -------------- --------- El Paso, Texas Groundwater - evaluation of $199,102 remedial treatment options, peer review of treatment system pilot testing, and regulatory guidance. Mike Horse Mine/ Mine Adit Drainage - 146,392 Upper Blackfoot preliminary design of active Mining Complex, water treatment and sludge Montana disposal system. East Helena, Groundwater - evaluation of 51,731 Montana remedial treatment options. Trench Mine/ Mine Adit Drainage - final 30,000 Alum Gulch, design and construction Arizona oversight of water treatment System. Salero Ranch, Surface and Groundwater - 20,000 Arizona maintenance and organization existing passive adit water treatment system. About ASARCO LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors' exclusive period to file a plan expires on Aug. 9, 2007. (ASARCO Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ASARCO LLC: Asbestos Panel Taps Claro Group as Insurance Advisor ---------------------------------------------------------------- The Official Committee of Unsecured Creditors for the Asbestos Debtors in ASARCO LLC and its debtor-affiliates' bankruptcy cases asks the U.S. Bankruptcy Court for the Southern District of Texas to employ David P. Anderson of The Claro Group, as insurance advisor. The Asbestos Committee had retained Risk International because of the extensive experience and knowledge of David P. Anderson, one of Risk International's employees, Jacob L. Newton, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in Dallas, Texas, tells the Court. Mr. Anderson is no longer associated with Risk International. As of May 2007, Mr. Anderson is now employed by The Claro Group, a consulting firm that provides services to ASARCO LLC, the Asbestos Debtors' parent company. The Asbestos Committee asserts that Mr. Anderson's continued retention would be beneficial and would avoid waste by preserving the history, knowledge and experience that the Asbestos Committee and Mr. Anderson have developed. As insurance advisor, Mr. Anderson will: (a) provide professional consultation with respect to insurance matters; (b) assist the Asbestos Committee in the analysis and evaluation of the availability, extent, and validity of all insurance policies owned by the Debtors; (c) assist the Asbestos Committee in the analysis and evaluation of insurance policies, as needed; (d) assist the Asbestos Committee in their analysis and evaluation of all defenses asserted by any insurance carrier; (e) attend and participate in meetings of the Asbestos Committee, its counsel and other parties-in-interest; (f) consult with and advise the Asbestos Committee regarding any program for the disposition of assets advocated by the Debtors; (g) prepare for, attend, and participate in meetings with creditors or the Debtors, and assist in assembling information needed by the Asbestos Committee in performance of its statutory powers and duties to its constituents, including rights and remedies of the Asbestos Committee and its constituents with regard to the assets of, and claims against, the Debtors, all insurance carriers, and other creditors of Debtors' estates; (h) perform other insurance related services that the Asbestos Committee may from time to time ask in the conduct of their businesses; (i) advise, consult with, and assist the Asbestos Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of Debtors, the operation of Debtors' businesses and the desirability of the continuance of Debtors' businesses; and (j) assist the Asbestos Committee in the negotiation of or opposition to a plan or plans of reorganization. Mr. Anderson will be paid $400 hourly for his services. Mr. Anderson assures the Court that he does not represent any interest adverse to the Asbestos Committee, and is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. Mr. Anderson relates that he and the Claro Group have implemented procedures and safeguards that, in effect, erect an "ethical wall" between the Claro Group employees who are currently working on matters with ASARCO and Mr. Anderson in his capacity as a consultant for the Asbestos Committee. Mr. Anderson maintains that those procedures and safeguards ensure that: -- confidential and proprietary client information is not used in connection with any matter or in any manner, except that for which it was intended by the Asbestos Committee; and -- confidential or proprietary information is not disclosed, intentionally or inadvertently, to individuals not working for the Asbestos Committee. About ASARCO LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors' exclusive period to file a plan expires on Aug. 9, 2007. (ASARCO Bankruptcy News, Issue No. 48; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASHVIN SRIVASTAVA: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Ashvin Srivastava 117 North Washington Drive Sarasota, FL 34236 Bankruptcy Case No.: 07-04866 Chapter 11 Petition Date: June 8, 2007 Court: Middle District of Florida (Tampa) Judge: Paul M. Glenn Debtor's Counsel: David W. Steen, Esq. 602 South Boulevard Tampa, FL 33606-2630 Tel: (813) 251-3000 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ AmEx Delta Platinum credit card $1,177 purchases AmEx Platinum credit card $15,188 purchases] Credit Collection Services collection agency $374 for NStar/Gas Dan Branch lawsuit $160,000 240 North Washington Boulevard Suite 700 Sarasota, FL 34236 Genuine Lawn Care lawn maintenance $642 M. Jay Lancer lawsuit $170,000 c/o Scott D. McKay, Esq. McKay Law Firm, P.A. 2055 Wood Street, Suite 120 Sarasota, FL 34237 Old Navy credit card $359 purchases Progressive Payroll lawsuit $50,000 Services Robert Lee lawsuits $170,000 c/o Damian M. Ozark, Esq. Ozark, Perron & Nelson, P.A. 2808 Manatee Avenue West Bradenton, FL 34205 Sprint phone service $778 Total Credit Recovery, collection agency $14,760 U.S.A. for American Express Tropicana Federal C.U. $14,819 BAUSCH & LOMB: Warburg Pincus Buyout Raises Fears on Outsourcing ---------------------------------------------------------------- In an effort to get out of the public spotlight after federal regulators identified Bausch & Lomb lens cleaner ReNu with MoistureLoc as the alleged root cause of a potentially blinding fungal infection, the company has accepted a $4.5 billion bid from New York City-based private equity player Warburg Pincus. Bausch & Lomb is one of the largest employers in Rochester, New York, and has been at the forefront in that city in demonstrating a commitment to workplace diversity and creating jobs with quality benefits, thus the buyout raises concerns about possible layoffs or moving manufacturing jobs out of the area or offshore. Warburg Pincus' connections and history give rise to these concerns. The firm is a major investor in India and China, and has a majority stake in WNS, the largest offshore business process company in India. In 2002, after acquiring the Town and Country Assistance, a U.K. insurance claims management company, WNS moved some of the claims processing and network maintenance work to India. In defense of that move, Warburg Pincus executive Wolfe Strouse told a Wharton interviewer, "We have seen tremendous efficiencies from both the technology enablement and also from the highly skilled labor in India ... I think you will see more such arrangements, where control and strategic level remains with the customer but the processing piece moves offshore." The private equity buyout industry, armed with more than a Half trillion dollars of capital, is engineering financial deals that together are larger than the annual budgets of most of the world's countries. This financial juggernaut is generating hefty returns to its investors, extraordinary riches for its executives, and newly relevant questions about the impact of its business practices on American workers, businesses, communities, and the nation. The Service Employees International Union has released a set of principles designed to address the concerns of investors, the public, and workers including: -- The buyout industry should play by the same set of rules as everyone else, including providing transparency and disclosure about their businesses, supporting equitable tax rates, and eliminating conflicts of interest and other potential abuses in their transactions; -- Workers should have a voice in the deals and benefit from their outcome; and -- Community stakeholders, including consumer organizations and the public, should have a voice in the deals and benefit from their outcome. SEIU members participate in pension funds with more than $1 trillion in assets, most of which invest 5 percent to 10 percent of their assets in private equity. SEIU is a longtime advocate of responsible corporate governance practices and an active member of the Council of Institutional Investors, an organization of more than 130 pension funds whose assets exceed $3 trillion. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. Rating Agencies Take Action As reported in the Troubled Company Reporter on May 28, 2007, the Warburg Pincus Deal prompted Standard & Poor's Ratings Services to lower its ratings on Bausch & Lomb and placed them on CreditWatch with negative implications. Among others, S&P lowered the company's corporate credit rating to 'BB+' from 'BBB'. According to S&P, even if the transaction is not consummated, management's willingness to aggressively increase leverage to this extent is not commensurate with an investment-grade rating. Additionally, Moody's Investors Service said it will continue its review of Bausch & Lomb's ratings for possible downgrade, including the company's Ba1 Corporate Family rating. Sidney Matti, an analyst at Moody's, stated that, "The review for possible downgrade will focus primarily on the company's post- acquisition capital structure and the likelihood that BOL's post- acquisition credit metrics would fall below the 'Ba' rating category." Furthermore, Fitch maintained its Negative Rating Watch on Bausch & Lomb emphasizing that the transaction would significantly increase leverage and likely result in a multiple-notch downgrade. Fitch also warns that the transaction would result in an Issuer Default Rating of no higher than 'BB-'. BEST BRANDS: Moody's Cuts Corporate Credit Rating to B3 from B2 --------------------------------------------------------------- Moody's Investors Service downgraded Best Brands Corporation's corporate family rating to B3 from B2, and lowered the ratings on the company's first and second lien senior secured credit facilities. The ratings remain under review for possible downgrade. The downgrade was prompted by Moody's expectation that the company will likely not meet the 6.0x Debt/EBITDA target set for 2007, which was a key assumption in assigning the original rating, as weaker than expected operating performance is leading to downward revisions in EBITDA projections and the need to renegotiate covenants due to potential violations. Moody's is continuing the review for possible downgrade due to concern that the company's liquidity will remain strained over the near-to-intermediate term, even if the latest amendment request is approved. LGD assessments are also subject to change. Ratings downgraded: Best Brands Corporation: -- Corporate family rating to B3 from B2; -- Probability of default rating to B3 from B2; -- $30 million first-lien revolving credit facility due 2011 to B2 from B1; -- $170 million first-lien Term Loan B due 2012 to B2 from B1; -- $75 million second-lien Term Loan due 2013 to Caa2 from Caa1. The company recently received a waiver and amendment to its credit facility to allow for the late delivery of its financial statements and allow one-time adjustments to its 2006 EBITDA and debt calculations in order to ensure compliance with its financial covenants. However, input costs are increasing more rapidly than expected, particularly for eggs, due to rising corn/feed prices, while revenue/volume levels are slightly weaker than expected due to product realignment issues at certain key customers. These factors have led to downward revisions in the company's EBITDA forecast, and the need to seek additional covenant relief. The company is also seeking additional time to complete its 2006 audit. Moody's review will focus on: (1) the company's ability to obtain an amendment to its credit facilities; (2) its ability to comply with any revised financial covenants and maintain adequate financial flexibility over the near-to-intermediate term as borrowings under the revolver have been higher than expected; (3) its ability to offset rising input costs with incremental cost saving initiatives, achieve synergies, improve profitability, and reduce leverage; and (4) its ability to stabilize recent modest revenue declines and resume growth. Headquartered in Minnetonka, Minnesota, Best Brands Corporation (parent company is Value Creation Partners, Inc.) is a leading manufacturer and distributor of specialty bakery products in the U.S., with pro forma revenues for 2006 approaching $500 million. BIOTA BRANDS: Court Sets June 28 Hearing on Bankruptcy Status ----------------------- ------------------------------------- BIOTA Brands of America, Inc.'s status as a debtor under Chapter 11 of the Bankruptcy Code remains unsure as the U.S. Bankruptcy Court for the District of Colorado kept changing its rulings, Beverly Corbell of the Daily Sentinel reports. The report discloses that on May 30, 2007, the Hon. Sidney Brooks, at the behest of creditor UPS Capital Business Credit, to suspend the Debtor's relief from stay and gave the go signal for the foreclosure to proceed. However, on June 13, 2007, Judge Brooks reversed his decision and allowed the stay to remain in effect, the report adds. A final hearing on the Debtor's status has been set for June 28, 2007. Headquartered ib Telluride, Colorado, BIOTA Brands of America, Inc. -- http://biotaspringwater.com/-- provides biodegradable plastic-bottled water. The company filed for Chapter 11 protection on April 17, 2007 (Bankr. D. Colo. Case No. 07-13730). Duncan E. Barber, Esq., in Denver, Colorado, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $5,356,153 and total debts of $10,587,429. BON-TON STORES: Posts $29.3 Million Net Loss in Qtr Ended May 5 --------------------------------------------------------------- The Bon-Ton Stores Inc. reported reported a net loss of $29.3 million for the first quarter ended May 5, 2007, compared to a net loss of $10.8 million for the first quarter ended April 29, 2006. For the first quarter of fiscal 2007, total sales increased 31.3% to $737.6 million compared to $561.8 million for the same period last year. The first quarter of fiscal 2007 sales include Carson's stores sales of $476.9 million for the period ended May 5, 2007. For the first quarter, Bon-Ton comparable store sales decreased 2.5% and Carson's comparable store sales decreased 0.8%. Bud Bergren, president and chief executive officer, commented, "Our first quarter 2007 results included the first five weeks of Carson's operations compared to the first quarter 2006 results which did not include this five-week period. This is historically a clearance-driven period with low margins. We were comfortable with our performance in the first two months of the quarter and then the coldest April in ten years hit, which had a substantial adverse impact on our sales results and put pressure on our margin dollars. We are encouraged by the strong performance in several key merchandise categories in the first quarter including better sportswear, children's, intimate apparel and shoes, and by the overall sales trends that improved once the weather became more seasonal. Customers have been responding positively to our assortments. We will continue to manage our inventories and control expenses to plan." Mr. Bergren continued, "I would like to reiterate what we said a year ago - the integration of the Carson's and Bon-Ton is a two- year process; we will not have a 'normalized' year until 2008. We are still on track with the integration process. We believe we have the right initiatives in place and remain intently focused on driving sales and profit for our company." Keith Plowman, e0xecutive vice president and chief financial fficer, commented, "We were not satisfied with our fiscal 2007 first quarter financial results. We planned for the fiscal 2007 first quarter loss to exceed last year due to the inclusion of Carson's operations for the first five weeks of the year, which is a historically low margin period, while this same five weeks of Carson's operations was not included in the fiscal 2006 first quarter results. During the last month of the quarter, the unseasonably cold weather and the resultant lower April sales volume pushed our margin dollars below our expectations. With the return of more seasonable weather during the month of May, we have seen an improvement in our sales performance and we believe our fiscal 2007 performance will be in the lower end of the range of the guidance provided previously for fiscal 2007, with the earnings per share range of $3.40 to $3.50 and the EBITDA range of $315 to $320 million." At May 5, 2007, the company's balance sheet showed $2.16 billion in total assets, $1.84 billion in total liabilities, and $318.1 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended May 5, 2007, are available for free at http://researcharchives.com/t/s?20fb About The Bon Ton Stores The Bon Ton Stores Inc. (NasdaqGS: BONT) -- http://www.bonton.com/ -- operates 277 department stores, which include eight furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, under the Parisian nameplate, two stores in the Detroit, Michigan area. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. * * * As reported in the Troubled Company Reporter on May 8, 2007, Fitch has upgraded The Bon-Ton Stores Inc.'s Issuer Default Rating to B from B-. The Rating Outlook is Stable. BRIDGEPORT CLO: S&P Prelim. Rates $19 Million Class D Notes at BB ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Bridgeport CLO II Ltd./Bridgeport CLO II Corp.'s $478 million notes due 2021. The preliminary ratings are based on information as of June 14, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The credit enhancement provided through the subordination of cash flows to the respective class; -- The transaction's cash flow structure, which was subjected to various stresses requested by Standard & Poor's; -- The collateral manager's experience; and -- The transaction's legal structure, including the issuer's bankruptcy remoteness. Preliminary Ratings Assigned Bridgeport CLO II Ltd./Bridgeport CLO II Corp. Class Rating Amount ----- ------ ------ A-1 AAA $390,000,000 A-2 AA $21,000,000 B A $26,000,000 C BBB $22,000,000 D BB $19,000,000 Subordinated notes NR $38,000,000 NR - Not rated. BRISTOW GROUP: Completes $300 Million Sr. Notes Private Offering ---------------------------------------------------------------- Bristow Group Inc. has closed its private offering of $300 million of senior notes due 2017. The notes priced at par and will carry an interest rate of 7-1/2%. The company intends to use the net proceeds from the offering to fund additional aircraft purchases under options and for general corporate purposes. Interest is payable on March 15 and September 15, beginning Sept. 15, 2007. The notes will not initially be registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. The notes may be resold by the initial purchasers pursuant to Rule 144A and Regulation S under the Securities Act. Headquartered in Houston, Texas, Bristow Group, Inc. -- http://www.bristowgroup.com-- (NYSE:BRS), fka Offshore Logistics, Inc., provides helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. The company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. * * * As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB' rating to helicopter service company Bristow Group Inc.'s $250 million senior notes due 2017. At the same time, Standard & Poor's affirmed the 'BB' corporate credit rating and all other ratings on the company. The outlook is negative. CALPINE CORP: Melissa Brown Promoted to Senior Vice-President ------------------------------------------------------------- Calpine Corporation has promoted Melissa Brown to Senior Vice President of Strategy and Financial Planning and Analysis, reporting to the Chief Financial Officer Lisa Donahue. In her new position, Ms. Brown will provide research and analysis on strategic matters and oversee Calpine's Financial Planning and Analysis group, which provides budgets, short-to mid-term forecasts, variance analysis and plant-and corporate-level financial metric analysis. In addition, she will manage an analytics group, which provides economic analysis for expansions, mergers and acquisitions and other development projects, as well as for asset rationalizations and large capital expenditures. "As Calpine moves forward with its plans to emerge from bankruptcy, we continue to benefit from Melissa's expertise in asset divestitures, credit group coordination and other restructuring related matters," Calpine's Chief Executive Officer Robert P. May said. "She is a seasoned financial executive with more than 17 years of experience in the energy industry in finance, transactions and general operations and is an asset to our management team," he added. Ms. Brown joined Calpine in March 2006 as the Senior Vice President-Treasurer and will maintain this role on an interim basis, continuing to manage the Treasury and Corporate Insurance functions. After receiving a bachelor of science in business administration from Oklahoma State University she began her business career at AES Corporation where she was the Manager of Corporate Financial Analysis. While at AES, Ms. Brown completed her master's in business administration from the College of William and Mary. She later joined NRG Energy where she held positions of increasing responsibility in a variety of groups, including Northeast Region, Treasury, Australia, Asset Sales, NEO Corporation, Corporate Strategy and Portfolio Assessment, Latin America and Emerging Markets and attained the position of Executive Director of Business Development. While at NRG, Ms. Brown also served as a member of the restructuring team while NRG proceeded through bankruptcy. Ms. Brown remained with the company as a member of the management team of the Northeast Region with specific responsibilities including regional strategy, budget, financial analysis and development. About Calpine Corporation Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. Calpine Corp. has until June 20, 2007, to file a plan, and until Aug. 20, 2007, to solicit acceptances of that plan. CANARGO ENERGY: Completes $15MM Debt Conversion & Restructuring --------------------------------------------------------------- CanArgo Energy Corporation has finalized the conversion of $15 million of debt and the restructuring of short-term interest payments on CanArgo's remaining convertible debt. CanArgo also disclosed further plans for the listing of its associate company Tethys Petroleum Limited. The conversion of an aggregate of $15 million of CanArgo's senior and senior subordinated convertible debt, held by Persistency Capital and certain accredited investors arranged by Ingalls & Snyder LLC into 6 million ordinary shares in Tethys has now been completed. The 6 million ordinary shares in Tethys received by the Converting Shareholders were transferred by CanArgo Limited, a wholly owned subsidiary of CanArgo. After this transaction CanArgo retains 8 million ordinary shares in Tethys, this equating to approximately 29.7% of the current issued and outstanding share capital of Tethys. As part of this transaction Ingalls & Snyder LLC have been issued with 11.1 million compensatory warrants to subscribe for shares of CanArgo common stock at an exercise price of $0.90 per share, and Persistency with 5 million compensatory warrants to subscribe for shares of CanArgo common stock at an exercise price of $1 per share. These warrants will expire on July 25, 2009, and Sept. 1, 2009, but their expiry may be accelerated by CanArgo in certain circumstances, including in the event that the Manavi M12 well in Georgia indicates sustainable production, if developed, in excess of 7,500 barrels of oil per day. It was also reported that the Toronto Stock Exchange has conditionally approved the listing of the ordinary shares of Tethys, subject to Tethys fulfilling all of the requirements of the TSX including completion of an initial public offering, within a prescribed time period. CanArgo also stated that agreement has been reached with its remaining loan noteholders to restructure its short-term loan interest obligations. Interest payments of approximately $2.1 million in aggregate due on June 30, 2007, shall not be paid in cash but shall in substitution be satisfied by way of the issue of approximately $2.1 million of further notes to the loan noteholders on the same terms as their existing notes. This agreement is an important step to ensure that the company's current operations proceed as planned in Georgia. About CanArgo Energy CanArgo Energy Corp. (AMEX: CNR) -- http://www.canargo.com/-- is an oil and gas exploration and production company operating in the oil and gas provinces of the former Soviet Union. CanArgo is currently focused primarily on Georgia in the Caucasus, and more recently has become involved in the major hydrocarbon producing country of Kazakhstan. In Georgia, the company has been actively exploring for new deposits of oil and gas, and is currently appraising what could be a substantial new discovery of oil. Going Concern Doubt As reported in the Troubled Company Reporter on March 26, 2007, LJ Soldinger Associates LLC raised substantial doubt about the ability of CanArgo Energy Corp. to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm stated that the company may not have sufficient funds to execute its business plan. CHARLES REYES: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Charles W. Reyes Linda J. Reyes 30 Darbywood Lane Belpre, OH 45714 Bankruptcy Case No.: 07-bk-54351 Chapter 11 Petition Date: June 6, 2007 Court: Southern District of Ohio (Columbus) Judge: Linda J. Reyes Debtor's Counsel: W. Mark Jump, Esq. Koffel & Jump 2130 Arlington Avenue Columbus, OH 43221 Tel: (614) 481-4480 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million Debtor's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ B.B.&T. 308 Main Street, $190,000 6402 Arlington Boulevard, Belpre, OH and Suite 830 U.C.C./security Falls Church, VA interest on 22042-2398 assets of medical practice $3,125 per month business loan $16,000 Collegiate Funding student loan/ $165,000 Services parent plus P.O. Box 6004 Ridgeland, MS 39158-6004 Medicare/Palmetto G.B.A. statutory lien $145,000 4249 Easton Way accounts Columbus, OH 43219 receivables of medical practice; value of senior lien: $190,000 Internal Revenue Service tax debt; statutory $36,700 lien; value of senior lien: $190,000 income tax $49,000 Camden Clark Memorial U.C.C./security $49,508 Hospital interest on assets of medical practice $3,125 per month; value of medical practice: $190,000 M.B.N.A. America line of credit $40,538 credit card $6,451 purchases State of Ohio Department income tax $17,585 of Taxation Wells Fargo account $15,000 Chase Automotive Finance 2001 Jeep Cherokee $12,908 $408/month; value of security: $6,300 H.F.C. line of credit $10,675 United Bank, Inc. estimated unsecured $10,000 deficiency balance after liquidation of 2003 jeep Citifinancial loan $9,478 Citibank credit card $8,289 G.E. Money Bank credit card $8,248 purchases Wells Fargo account $8,200 Universal Card credit card $8,050 purchases CLEVELAND-CLIFFS: Agrees to Buy PinnOak for $450 Million in Cash ---------------------------------------------------------------- Cleveland-Cliffs Inc. has agreed to acquire PinnOak Resources, LLC, and its subsidiary operating companies, for $450 million in cash plus approximately $150 million in debt. Payment of 25 percent of the cash portion will be deferred until Dec. 31, 2009. The transaction is expected to close within 60 days and is subject to regulatory clearances. "This acquisition represents an attractive expansion opportunity for our company. When combined with our Australian coking and thermal coal operation, the Sonoma Project, the company will control a 10 million ton position, with the majority being for export," commented Joseph A. Carrabba, Cleveland-Cliffs chairman, president and chief executive officer. "It marks yet another step in the execution of our strategy to deepen Cliffs' exposure to faster growing international markets and further diversify its mineral sales." The transaction is expected to increase Cliffs' 2008 revenues by approximately $400 million and add approximately $100 million in EBITDA. Due to customer transition issues, full-year 2007 revenues are expected to be approximately $300 million. The transaction will have minimal earnings impact to Cliffs in 2007 as it covers acquisition and integration costs. "We are excited to welcome the PinnOak team to the Cliffs organization as they provide a depth of experience and an additional growth platform consistent with the Company's strategic objectives," Carrabba added. PinnOak Projects PinnOak is a privately owned domestic producer of high-quality, low-volatile metallurgical coal. PinnOak's operations include two complexes comprising three underground mines -- the Pinnacle and Green Ridge mines in southern West Virginia, and the Oak Grove mine near Birmingham, Alabama. Combined, the mines have the capacity to produce in excess of seven million tons of premium-quality metallurgical coal annually. The Pinnacle complex, located in Pineville, West Virginia, comprises the Pinnacle and Green Ridge properties. In operation since 1969, Pinnacle produces a high-quality, low-volatile metallurgical coal and boasts the only longwall plow system in the United States. The Green Ridge mine, opened in 2004, also produces a premium-quality product. Coal from both mines is processed by the Pinnacle Preparation Plant and then shipped to the customer via the Norfolk Southern rail line and exports from the port of Norfolk, Virginia. Located in Adger, Alabama, the Oak Grove mine has been in operation since 1975 producing high-quality, low-volatile, very low-sulfur product, which is in high demand due to its excellent coking characteristics. Processing from this mine is done at the Concord Preparation Plant and product is transported domestically by rail, barge or truck. International shipments initiate from the port of Mobile, Alabama. Approximately 80 percent of PinnOak's total 2007 production is slated for the international steel market, with the balance committed to integrated steelmakers in the United States. The company produced approximately 3.9 million tons of coal in 2006 and has current estimated reserves of 140 million tons. About Cleveland-Cliffs Inc. Based in Cleveland, Ohio, Cleveland-Cliffs Inc. (NYSE: CLF) -- http://www.cleveland-cliffs.com/-- produces iron ore pellets in North America, and sells the majority of its pellets to integrated steel companies in North America and Canada. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada. The company is a majority owner of Portman Limited, an iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. * * * Cleveland-Cliffs, Inc.'s preferred stocks carry Moody's Investor Service's 'B3' rating. COMMERCIAL MORTGAGE: S&P Lowers Rating on Class H Certs. to B- -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class F, G, and H commercial mortgage lease-backed certificates from Commercial Mortgage Lease-Backed Securities LLC's series 2001-CMLB-1 and removed them from CreditWatch, where they were placed with negative implications on May 22, 2007. Concurrently, S&P affirmed its 'BBB+' rating on class E and removed it from CreditWatch with negative implications, where it was also placed on May 22, 2007. The CreditWatch resolutions follow the lowering of the corporate credit rating on Dollar General Corp. to B/Negative/-- from BB+/Watch Neg/--. The lowered and affirmed ratings reflect Standard & Poor's analysis of the transaction in relation to the current rating on Dollar General Corp. As of the May 21, 2007, remittance report, the collateral for series 2001-CMLB-1 consisted of 113 credit tenant lease loans ($332.2 million, 90%), three notes ($33.8 million, 9%) secured by properties leased to Dollar General Corp., and one loan ($2.5 million) that was defeased. Dollar General Corp. represents the fourth-largest tenant exposure within the transaction. The aggregate balance of the collateral is $368.5 million. Because the transaction is collateralized by CTL loans, the ratings on the certificates may fluctuate over time as the ratings on the underlying tenants and guarantors change. Standard & Poor's stressed various loans in its analysis and reviewed the resultant credit enhancement levels in conjunction with the levels determined by Standard & Poor's credit lease default model. Ratings Lowered and Removed from Creditwatch Negative Commercial Mortgage Lease-Backed Securities LLC Commercial mortgage lease-backed certificates series 2001-CMLB-1 Rating ------ Class To From Credit enhancement ----- -- ---- ------------------ F BB+ BBB-/Watch Neg 7.55% G BB- BB/Watch Neg 4.96% H B- B/Watch Neg 1.73% Rating Affirmed and Removed from Creditwatch Negative Commercial Mortgage Lease-Backed Securities LLC Commercial mortgage lease-backed certificates series 2001-CMLB-1 Rating ------ Class To From Credit enhancement ----- -- ---- ---------------- E BBB+ BBB+/Watch Neg 10.78% CONSECO INC: Moody's Rates $200 Mil. Sr. Credit Facility at Ba3 --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating, with a stable outlook, to the $200 million incremental senior secured credit facility of Conseco, Inc. (Conseco, NYSE: CNO; senior secured credit facility at Ba3). Proceeds from the $200 million incremental facility, due 2013, are intended to be used to support the company's share buyback program and provide capital support to certain insurance subsidiaries. As of March 31, 2007, the company had $671 million outstanding on its term bank facility. Moody's said that the terms of the facility remain relatively unchanged, although the company did refresh the accordion option to increase the term loan facility to $330 million and increased the restricted payments to $300 million from $150 million. "The increased interest cost of the additional bank debt will be more than offset by the $38 million decrease in annual preferred dividends from the recent conversion of the manditorily convertible preferred stock to common stock," Scott Robinson, Moody's Vice President and Senior Credit Officer said. The company's financial leverage remains well within Moody's expectations. The rating agency noted that the Baa3 insurance financial strength rating on Conseco's insurance subsidiaries as well as the ratings on the secured credit facility and senior convertible debentures (Ba3 and B1, respectively) of Conseco, Inc. are based on the improvement in the company's financial profile since the holding company emerged from bankruptcy, as well as a recognition of the challenges that the company faces in improving its business profile. Moody's commented that the company's current capital structure should provide Conseco the flexibility to make needed improvements in its operations and work on executing its business strategy. However, the current ratings also reflect the challenges that the company will face in improving its market presence, maintaining the strength of its agency force, improving financial reporting controls and in growing new business in a profitable manner. At the same time, the ratings incorporate the expectation that the company will maintain earnings interest coverage of at least two times and consolidated risk based capital of greater than 300%. The last rating action took place on April 2, 2007, when Moody's changed the outlook on Conseco and its insurance subsidiaries to stable from positive. Conseco is a specialized financial services holding company that operates primarily in the life and health insurance sectors through its subsidiaries. As of Dec. 31, 2006, Conseco reported total assets of $32.7 billion and shareholder's equity of $4.7 billion. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. CREDIT SUISSE: Moody's Rates 2005-TFL2 Class L Certs. at Ba1 ------------------------------------------------------------ Moody's Investors Service upgraded the ratings of seven classes and affirmed the ratings of six classes of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-TFL2 as: -- Class A-2, $8,023,112, Floating, affirmed at Aaa; -- Class A-X-1, Notional, affirmed at Aaa; -- Class A-X-2, Notional, affirmed at Aaa; -- Class B, $37,000,000, Floating, affirmed at Aaa; -- Class C, $35,000,000, Floating, affirmed at Aaa; -- Class D, $16,000,000, Floating, upgraded to Aaa from Aa1; -- Class E, $14,000,000, Floating, upgraded to Aaa from Aa2; -- Class F, $21,000,000, Floating, upgraded to Aa1 from Aa3; -- Class G, $17,500,000, Floating, upgraded to Aa3 from A2; -- Class H, $16,500,000, Floating, upgraded to A1 from A3; -- Class J, $17,000,000, Floating, upgraded to A3 from Baa1; -- Class K, $14,500,000, Floating, upgraded to Baa2 from Baa3; -- Class L, $18,600,000, Floating, affirmed at Ba1. The Certificates are collateralized by three mortgage loans or mortgage loan participations. As of the May 15, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 77.3% to $215.1 million from $948.1 million at securitization as a result of the payoff of 15 loans initially in the pool. The remaining loans range in size from 18.3% to 41.8% of the pool balance. Moody's is upgrading Classes D, E, F, G, H, J and K due to improved credit support resulting from loan payoffs and the stable performance of the pool's remaining loans. CREDIT SUISSE: Moody's Rates Six 2005-C3 Cert. Classes at Low-B --------------------------------------------------------------- Moody's Investors Service affirmed the ratings of 24 classes of Credit Suisse First Boston Commercial Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-C3 as: -- Class A-1, $36,896,694, affirmed at Aaa; -- Class A-2, $176,757,000, affirmed at Aaa; -- Class A-3, $79,635,000, affirmed at Aaa; -- Class A-AB, $61,470,000, affirmed at Aaa; -- Class A-4, $372,531,000, affirmed at Aaa; -- Class A-1-A, $397,980,098, affirmed at Aaa; -- Class A-J, $135,048,000, affirmed at Aaa; -- Class A-M, $163,695,000, affirmed at Aaa; -- Class A-X, Notional, affirmed at Aaa; -- Class A-Y, Notional, affirmed at Aaa; -- Class A-SP, Notional, affirmed at Aaa; -- Class B, $34,785,000, affirmed at Aa2; -- Class C, $16,370,000, affirmed at A1; -- Class D, $14,323,000, affirmed at A2; -- Class E, $16,370,000, affirmed at A3; -- Class F, $20,462,000, affirmed at Baa1; -- Class G, $16,369,000, affirmed at Baa2; -- Class H, $18,416,000, affirmed at Baa3; -- Class J, $6,138,000, affirmed at Ba1; -- Class K, $8,185,000, affirmed at Ba2; -- Class L, $6,139,000, affirmed at Ba3; -- Class M, $4,092,000, affirmed at B1; -- Class N, $4,092,000, affirmed at B2; -- Class O, $6,139,000, affirmed at B3. As of the May 17, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 1.3% to $1.62 billion from $1.64 billion at securitization. The Certificates are collateralized by 199 mortgage loans. The loans range in size from less than 1.0% to 8.2% of the pool, with the top 10 loans representing 38.9% of the pool. The pool includes 53 co-op loans, representing 11.2% of the outstanding loan balance. The pool also includes one shadow rated loan, representing 0.5% of the outstanding loan balance. One loan, representing 0.4% of the pool, is in special servicing. Moody's estimates a loss of $1.4 million from the specially serviced loan. There have been no loans liquidated from the pool and no loans have defeased. Thirty-one loans, representing 12.5% of the pool, are on the master servicer's watchlist. Moody's was provided with full-year 2005 and full-year 2006 operating results for 93.4% and 69.1%, respectively, of the pool. Moody's weighted average loan to value ratio for the conduit component is 97.8%, compared to 99.2% at securitization. The shadow rated loan is the 635 Madison Avenue Loan ($8.6 million - 0.5%), which is secured by a 144,000 square foot office building located in New York City. Moody's current shadow rating is Aaa, the same as at securitization. The three largest conduit loans represent 20.9% of the pool. The largest conduit loan is the San Diego Office Park Loan ($133.0 million - 8.2%), which is secured by an 11 building Class A office complex totaling 645,000 square feet located in San Diego, California. The loan is interest only for the entire term. Moody's LTV is in excess of 100.0% the same as at securitization. The second largest conduit loan is the Southland Center Mall Loan ($112.3 million -- 7.0%), which is secured by the borrower's interest in a 932,000 square foot, regional mall (640,000 square feet of collateral) located in Taylor, Michigan. Moody's LTV is in excess of 100.0% the same as at securitization. The third largest conduit loan is the 80-90 Maiden Lane Loan ($92.9 million -- 5.7%), which is secured by two Class B office buildings totaling 545,000 square feet and located in the Insurance District of New York City. Moody's LTV is in excess of 100.0% the same as at securitization. DAIMLERCHRYSLER: Chrysler to Invest $450MM in Kenosha Engine Plant ------------------------------------------------------------------ Chrysler Group disclosed plans to invest $450 million in its Kenosha Engine Plant in Wisconsin for a comprehensive retooling in preparation for the launch of a new family of fuel-efficient V-6 engines. The investment and retooling are part of an extensive powertrain offensive that will commit a total of $3 billion to develop and launch the new engines -- known as Phoenix engines -- in addition to a dual-clutch transmission joint venture with German parts maker Getrag and new common axle family. All are part of Chrysler Group's commitment to advanced powertrain technologies and the first step to more fuel-efficient vehicles. Scheduled to begin production in January 2011, the plant will have an annual Phoenix production capacity of 400,000 units when it reaches full volume. The event, held at the 1.9 million square-foot plant, marks another significant milestone in the progress of the Chrysler Group's Recovery and Transformation Plan. Wisconsin Gov. Jim Doyle; Kenosha Mayor John Antaramian; Richard Chow-Wah, Vice President - Powertrain Manufacturing, Chrysler Group; Kenosha Engine Plant Manager Kevin Sell; and UAW officials participated in the news event. "This retooling investment will allow us to build an entirely new, globally competitive family of V-6 engines," Mr. Chow-Wah said. "The Chrysler Group Recovery and Transformation Plan is focused on new products, and the news supports a long-term commitment to new vehicle components that support consumer demand for refined, economical-to-operate vehicles for many years to come." "Chrysler Group has had a 20-year-long presence in Kenosha and even longer factoring in American Motors' storied past," Mr. Sell said. "With this new tooling and this new engine line, we're demonstrating the commitment of Chrysler Group to support economic development and invest in the communities where it does business. Retooling for the Kenosha Phoenix Engine Plant will begin in June 2010. "Wisconsin is one of America's leading manufacturing economies. This $450 million commitment by Chrysler to our state demonstrates that we continue to attract important investments that provide high paying jobs for our workforce," Wisconsin Gov. Jim Doyle said. "This shows what can happen when state and local governments work together to create a business-friendly environment." The Governor said that Chrysler Group would receive an incentive package of Kenosha County, City of Kenosha and State of Wisconsin funds totaling $16.8 million. Once the plant is fully operational, Kenosha Phoenix Engine Plant will employ 700 full- time workers. "This is an important day for the future of the UAW and Chrysler Group, and in particular for the continued competitiveness of our team here in the State of Wisconsin," General Holiefield, UAW Vice President, who directs the union's DaimlerChrysler Department, said. "We have a vision to see this company and our union grow this business and transform Chrysler Group into a stronger company that will be competitive for the long run. The investment we announce today proves that we are investing in this vision." Chrysler Group has had a presence in Kenosha since 1987, when American Motors Corp. was acquired by Chrysler Corporation. The company's current 2.7-liter V-6 has been produced there since 1997. The company's 3.5-liter V-6 was launched in 1999, part of a $624 million modernization of the plant. The plant was built in 1917. Over the long term, the Phoenix family of V-6 engines will reduce manufacturing complexity by paring the company's four current V-6 engine architectures to one. Kenosha becomes the third Phoenix engine plant announced by Chrysler Group since April 2007, joining previously announced plants in Trenton, Michigan and Saltillo, Mexico. The company will also construct an all-new plant in Marysville, Michigan to build a new line of corporate axles. Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group As quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: Joins GM & Ford in Healthcare Fund, Sources Say ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group, General Motors Corp. and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined $114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined US$12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of $1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time $1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four- year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21% to $64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of $31 billion, and Chrysler's potential future tab is about $19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market- share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non- union employees, retirees and dependents. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: Chrysler Workers Seeking Buyouts Exceed Plan ------------------------------------------------------------- About 6,400 U.S. hourly workers have shown interest in taking the buyout or early retirement package being offered by DaimlerChrysler AG's Chrysler Group, exceeding the company's target of 4,700 hourly U.S. workers, Dow Jones Newswires reports. According to the report, Chrysler spokeswoman Michele Tinson wouldn't confirm specific numbers but said, "corporate-wide, hourly retirement and separation program acceptances have exceeded our original projections." The layoffs are part of Chrysler's restructuring of its North American operations after posting a $1.5 billion loss last year. Cerberus Capital Management LP is buying the U.S. unit, which has struggled in recent years to stem a loss of market share in the U.S. to Asian rivals with leaner cost structures, Dow Jones relates. General Motors Corp. and Ford Motor Company have seen tens of thousands of workers accept buyouts and early retirements as those companies cut capacity in the face of lower market share, Dow Jones reveals. The U.S. auto makers have used buyouts since laid- off workers go into a program known as the Jobs Bank, where they receive much of their pay and benefits despite not working. As reported in the Troubled Company Reporter on March 8, 2007, Chrysler will offer as much as $100,000 to some of its 49,600 hourly workers at 11 U.S. plants to leave the company as part of its recovery plan, hoping to eliminate 11,000 hourly positions and 2,000 salaried jobs in an effort to return to profitability following its $1.475 billion loss in 2006. Chrysler and the United Auto Workers agreed to two special programs that will provide retirement and separation incentives for the company's bargaining-unit employees in the United States as part of the Chrysler Group's Recovery and Transformation Plan. The negotiated programs include an Incentive Program for Retirement with $70,000 cash lump-sum amount for employees with 30 or more years of credited service, or who meet a combination of age and years-of-service eligibility, and an Enhanced Voluntary Termination of Employment Program, which provides a lump sum payment of $100,000 for employees with at least one year of credited service. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER AG: Thomas Sidlik Leaves Board of Management ------------------------------------------------------------ DaimlerChrysler AG disclosed the retirement of Thomas Sidlik, member of the Board of Management. Mr. Sidlik has been a member of the Board since December 1998, and has been responsible for Global Procurement & Supply since December 2003. The retirement of Mr. Sidlik becomes effective at the closing of the takeover of the Chrysler Group by Cerberus Capital Management in the third quarter. There will no longer be a separate board of management position for procurement after the realignment. In the future, all procurement activities will be directly coordinated between the divisions. Within the Board of Management, Bodo Uebber will additionally assume overall responsibility for procurement. Mr. Sidlik will continue as Chairman of the Board of Trustees of Eastern Michigan University in Ypsilanti, to which he was elected in January 2007. He was appointed to that Board by Michigan Governor Jennifer Granholm in 2005. "Mr. Sidlik has been committed to the success of DaimlerChrysler since Day One of the merger," Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of Mercedes Car Group, said. "He has been a loyal and supportive Member of the Board of Management. Now, based upon the new management concepts for the Chrysler Group and DaimlerChrysler, it is a logical step that he leaves the Board. This is a mutual and agreeable decision by both." Mr. Sidlik was born on November 14, 1949, in New Britain, Connecticut. He graduated from New York University in 1971 with a Bachelor of Science degree with honors in Economics and Finance and earned a Master of Business Administration in Finance from the University of Chicago in 1973. Mr. Sidlik joined the Chrysler Corporation in 1980. Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group As quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DEL MONTE: Earns $36.7 Million in Fourth Quarter Ended April 29 --------------------------------------------------------------- Del Monte Foods Company reported net sales for the fourth quarter ended April 29, 2007, of $940.1 million, as compared with a fourth quarter net sales of $799.2 million last year, an increase of 17.6%. Income from continuing operations for the fourth quarter fiscal 2007 was $36.8 million, compared to $41.7 million in the previous year. Net income for the fourth quarter fiscal 2007 was $36.7 million, as compared with a net income of $57.9 million for the fourth quarter in 2006. The 17.6% increase in net sales was driven by the acquisitions of Meow Mix and Milk-Bone. Growth from new products and pricing also contributed to the increase in net sales. These gains were partially offset by volume declines. Full Year 2007 Results The company reported net sales for fiscal 2007 of $3.4 billion, as compared with $3 billion last year, an increase of 13.9%. Income from continuing operations was $113 million, as compared with $137 million in the previous year. The 13.9% increase in net sales was driven by the Meow Mix and Milk-Bone acquisitions. Growth from new products and pricing also contributed to the increase in net sales. These gains were partially offset by lower volume driven primarily by competitive marketing dynamics and elasticity in pet food, pricing elasticity in the Consumer Products business, overall business performance in StarKist Seafood and lower volume in vegetables. As of April 29, 2007, the company listed total assets valued at $4.6 billion, total liabilities of $3.1 billion, and total stockholders' equity of $1.5 billion. The company held $13 million in unrestricted cash as of April 29, 2007, as compared with $459.9 million in unrestricted cash and $43.3 million in restricted cash as of April 30, 2006. "This quarter and full year's solid financial performance were driven by the ongoing successful execution against our strategic objectives," said Richard G. Wolford, chairman and chief executive officer of Del Monte Foods. "In fiscal 2007 Del Monte made several structural changes which substantially improved the earning potential and competitiveness of our company. The successful acquisition and integration of Meow Mix and Milk-Bone significantly enhanced the growth and earnings profile of our overall company and significantly upgraded our competitive strength in Pet Products. In addition, successful pricing actions coupled with our internal cost reduction initiatives and the transformation plan enabled us to address significant inflationary cost pressures during the year and going forward. We are extremely pleased with the performance of the pet acquisitions, which continue to exceed expectations. Overall, we continued our solid track record of generating strong cash flow well ahead of our fiscal 2007 guidance. We still however must deal with challenges, including inflationary cost pressures and our StarKist Seafood business. Despite these ongoing headwinds, we believe we have the foundation in place to deliver strong [fiscal 2008] performance." First Quarter and Fiscal 2008 Outlook For the fiscal 2008 first quarter, the company expects to deliver sales growth of about 5% to 7% over net sales of $674.1 million in the first quarter of fiscal 2007. For fiscal 2008, the company expects sales growth of 5% to 7% over fiscal 2007 net sales. Fiscal 2008 net sales growth is expected to be driven primarily by growth across the company's portfolio, in particular the Meow Mix and Milk-Bone acquisitions. During the fourth quarter, the company announced additional pricing actions effective April 30, 2007, in Pet Products in response to higher raw ingredient costs related to the demand for ethanol. In fiscal 2008, the company expects cash provided by operating activities, less cash used in investing activities to be about $180 million to $200 million. The company's adjusted cash flow in fiscal 2007 was $195.9 million, which compares favorably to its fiscal 2007 guidance of $150 million to $170 million, both of which excluded the purchase of Meow Mix and Milk-Bone. About Del Monte Foods Based in San Francisco, California, Del Monte Foods Company (NYSE: DLM) -- http://www.delmonte.com/-- produces and distributes processed vegetables, fruit and tomato products, and pet products. The products are sold under Del Monte, Contadina, S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix, Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone. The Group has food-processing plants in South America and has subsidiaries in Venezuela, Colombia, Ecuador and Peru. The production facilities are operated in California, the Midwest, Washington and Texas, as well as 7 distribution centers. * * * Del Monte Foods Company continues to carry Standard & Poor's BB- long-term foreign and local issuer credit ratings and B1 short- term foreign and local issuer credit ratings. The ratings outlook remains negative. The company also carries Fitch's BB- long-term issuer default rating. DOBI MEDICAL: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: DOBI Medical International, Inc. 1200 MacArthur Boulevard Mahwah, NJ 07430 Bankruptcy Case No.: 07-18404 Type of Business: The Debtor manufactures medical devices. Chapter 11 Petition Date: June 14, 2007 Court: District of New Jersey (Newark) Debtor's Counsel: Eric W. Sleeper, Esq. Herrick Feinstein, LLP 210 Carnegie Center Princeton, NJ 08540 Tel: (609) 452-3818 Fax: (609) 520-9095 Debtor's financial condition as of March 31, 2007: Total Assets: $53,923 Total Debts: $7,593,537 Debtor's List of its 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Phillip Thomas $280,454 3 Hazelwood Lane Kinnelon, NJ 07405 Marcon Mahwah, LLC $100,666 79 Chestnut Street, Suite 101 Ridgewood, NJ 07450 Advanced Clinical Services, LLC $95,456 1914 Paysphere Circle Chicago, IL 60674-0674 Beardsworth Consulting Group, Inc. $86,275 Baptist Memorial Hospital for Women $84,100 Frank Puthoff $80,000 Greenberg Traurig, LLP $77,608 University of Miami $61,318 Daniel Kaplan $58,840 Health Research Association $54,000 SMO USA $51,000 Consulting, Engineering and $49,733 Development Services Winstead Sechrest & Minick $47,253 Breast Care Specialists, P.C. $41,500 Medstar Research Institute $37,932 Medical Imaging of Colorado, LLC $36,000 RSI Medical Staffing, Inc. $33,632 Dartmouth College $29,683 Office of Sponsored Projects Virginia Mason Medical Center $28,945 Burns & Levenson LLP $24,912 DURA AUTOMOTIVE: Wants to Amend Terms of $300 Million DIP Facility ------------------------------------------------------------------ Dura Automotive Systems Inc. and its debtor-affiliates wants to amend the terms to a $300 million debtor-in-possession financing entered on November 2006 to provide additional financial flexibility and a stable environment while they negotiate key elements of their Chapter 11 plan over ensuing critical months. DIP Agreements Amended The Postpetition Credit Agreements approved by the U.S. Bankruptcy Court for the District of Delaware entered into by the Debtors with Goldman Sachs Capital Partners L.P., General Electric Capital Corporation, and other lender parties contain various covenants and provisions that were negotiated by the Debtors in the weeks immediately preceding and following the Oct. 30, 2006 petition date. The relevant financial covenants were based on a financial budget. Given the relatively short timeframe available to secure a much needed DIP financing, the Debtors prepared the Original DIP Budget via an expedited 2007 annual planning process. Since that time, the Debtors have completed a review and re- forecast for 2007. The Debtors and their advisers have identified a host of additional operational restructuring initiatives which, when combined with certain initiatives identified before the Petition Date are projected to greatly improve the Debtors' future financial performance. The efforts from the combined operational restructuring initiatives have already begun to materialize in the Debtors' and their European and other foreign affiliates' recent financial performance. The Debtors' recently formulated five-year business plan, which was developed on a "bottom-up" basis, incorporates the expected improvements from the operational restructuring initiatives. The implementation of these initiatives is expected to be complete by mid-2008. The Debtors are targeting an emergence from Chapter 11 in the late third quarter to early fourth quarter of 2007. In addition to their operational restructuring efforts, the Debtors are currently pursuing a sale of their Atwood Mobile Products Division, as well as rights offering to certain unsecured creditors. As such, the ensuing months represent the most critical period in the Debtors' Chapter 11 restructuring process. While the Business Plan does not project a default under any of the salient terms of the Postpetition Credit Agreements, the Debtors seek to enter into amendments to the Agreements. To that end, the Debtors have identified certain covenants and provisions that must be modified to provide them with this needed financial flexibility. During the weeks leading up to the filing of the motion, the Debtors and Miller Buckfire & Co. LLC actively negotiated with the Postpetition Lenders to amend the Postpetition Credit Agreements. The DIP Amendments provide for these adjustments: 1. Minimum EBITDA Requirement -- Minimum Consolidated and Guarantor adjusted EBITBA requirements to be reduced for the fourth-month period from May 2007 to August 2007. The existing threshold levels for September 2007 through December 2007 will remain unchanged. 2. Non-Guarantor Receivable and Factoring and Sale- Leasebacks -- Baskets for permissible Non-Guarantor receivables factoring and sale-leaseback transactions to be combined. 3. Limited Issuance of Non-Guarantor Letters of Credit -- Authorize the non-Guarantors to obtain up to $5,000,000 in cash-collateralized letters of credit. These letters of credit are not to be issued under the Postpetition Credit Agreements. 4. Brazilian Funds Return -- Authorize the Debtors to return $1,450,000 of funds received from a non-debtor Brazilian affiliate as a prepayment under an existing intercompany loan. The Brazilian subsidiary made the prepayment on the loan in order to assist the Debtors with near-term cash management needs. The funds are needed by the Brazilian subsidiary to fund previously identified capital budgeting activities, and will be transferred back to the Brazilian subsidiary through a new $1,450,000 loan. The DIP Amendments are a proactive measure to ensure the Debtors a stable environment as they prepare to exit Chapter 11. In addition to the incremental headroom to be provided above certain of the Debtor's financial covenant thresholds, the Non-Guarantors will obtain additional financial flexibility, consistent with their operational restructuring efforts. In consideration for the covenant relief, the DIP Amendments provide for an aggregate fee of up to $300,000 to be paid to the DIP Lenders if all of them timely support for the DIP Amendments. On June 18, 2007, the administrative agents to the Postpetition Credit Agreements will tally the final voting results from the DIP Lenders regarding the DIP Amendments. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expires on Sept. 30, 2007. (Dura Automotive Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). EARTH BIOFUELS: Posts $25.5 Mil. Net Loss in Qtr. Ended March 31 ---------------------------------------------------------------- Earth Biofuels Inc. reported a net loss of $25,527,000 on total revenues of $6,645,000 for the first quarter ended March 31, 2007, compared with a net loss of $8,866,000 on total revenues of $8,617,000 for the same period last year. The decrease in total revenue is primarily the result of decreased sales of biodiesel. Cost of sales for three months ended March 31, 2007, decreased $3 million, or 33%, to approximately $6.3 million from approximately $9.4 million for 2006. As a result, the company reported a gross profit of $353,000 for the 2007 quarter compared with a gross loss of $796,000 for the 2006 quarter. Net cash used in operating activities was approximately $10.2 million for three months ended March 31, 2007, compared to net cash used in operating activities of approximately $3.6 million for the same period in 2006. The increase in net cash flow used in operating activities relates to increasing operating costs due to the ramp-up of the company's operations, including higher cost of good sold, other selling, general and administrative expenses and interest expense. Net cash provided by financing activities was $21.8 million for three months ended March 31, 2007, compared to net cash provided by financing activities of approximately $1.6 million for the same period in 2006. Cash flows provided by financing activities during three months ended March 31, 2007, relate primarily to new credit facilities totaling $29 million, less the repayment of prior debts of $8.7 million, and offset by debt issuance costs of $500,000. In addition, $1.5 million relates to proceeds from the issuance of common stock. At March 31, 2007, the company's consolidated balance sheet showed $128.0 million in total assets, $71.5 million in total liabilities, and $56.5 million in total stockholders' equity. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $10.8 million in total current assets available to pay $52.7 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?20f4 Going Concern Doubt As reported in the Troubled Company Reporter on May 24, 2007, Malone & Bailey P.C., in Houston, Texas, expressed substantial doubt about Earth Biofuels Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses and working capital deficit. Earth Biofuels has incurred significant losses from operations and as of March 31, 2007, has limited financial resources. About Earth Biofuels Headquartered in Dallas, Earth Biofuels Inc. (OTC BB: EBOF) -- http://www.earthbiofuels.com/-- engages in the production, distribution, and sale of renewable fuels, with a focus on biodiesel fuel, in the United States. It produces pure biodiesel fuel (B100) through the utilization of vegetable oils, such as soy and canola oil as raw material. The company distributes petroleum/biodiesel blended fuel, such as B20 through wholesale distributors, truck stops, and fueling stations. Earth Biofuels also produces and markets liquefied natural gas. EUGENIE BROUSSARD: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Eugenie Broussard 761 Diablo Raod Danville, CA 94526 Bankruptcy Case No.: 07-41711 Chapter 11 Petition Date: June 6, 2007 Court: Northern District of California (Oakland) Debtor's Counsel: Fayedine Coulter, Esq. 1 Kaiser Plaza, Suite 601 Oakland, CA 94612 Tel: (510) 839-2245 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. FHC HEALTH: S&P Places B Credit Rating on Negative CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' counterparty credit rating on FHC Health Systems Inc. on CreditWatch with negative implications. This rating action follows the announcement that effective Sept. 1, 2007, FHC will no longer manage behavioral health care for Medicaid recipients and other beneficiaries of the Maricopa County (Arizona) Regional Behavioral Health Authority. In 2006, this account had constituted about 38% of the company's revenues and 31% of the company's EBITDA. The loss of the account results in a diminished competitive profile for FHC. "We expect to conduct follow-up discussions with FHC's management team in June and July regarding the company's revisions in earnings and capital structure," said Standard & Poor's credit analyst Neal Freedman. "Shortly thereafter, we could affirm the ratings or lower them by one notch. In addition, the outlook on FHC could be stable or negative." FISHER COMMS: S&P Puts B- Credit Rating Under Positive CreditWatch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on Fisher Communications Inc., including the 'B-' corporate credit rating, on CreditWatch with positive implications. "The CreditWatch placement recognizes the company's recent progress in improving earnings and lowering its financial leverage," said Standard & Poor's credit analyst Deborah Kinzer. Seattle, Washington-based Fisher is a broadcaster that operates 19 TV stations and nine radio stations in the U.S. Pacific Northwest. The company had total debt of approximately $150 million as of March 31, 2007. In resolving the CreditWatch listing, we will consider Fisher's overall operating outlook and future business strategies, and the impact of election-related revenue cycles on the company's financial structure. FORD MOTOR: Joins GM & Chrysler in Healthcare Fund, Sources Say --------------------------------------------------------------- General Motors Corp., DaimlerChrysler AG's Chrysler Group, and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined $114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined $12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of $1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time $1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four- year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21% to $64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about $19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market- share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non- union employees, retirees and dependents. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's $3-billion of senior convertible notes due 2036. FORD MOTOR: Inks MOU Selling ACH Sandusky Plant to Meridian Auto ---------------------------------------------------------------- Ford Motor Company and Meridian Automotive Systems disclosed a Memorandum of Understanding, outlining a framework for the sale of Automotive Components Holdings' lighting business and its Sandusky, Ohio plant. With this announcement, ACH has sold one plant and signed MOUs related to eight additional plants during the past six months. The primary product produced at the ACH Sandusky Plant is automotive lighting, including front, rear and signal lights. These products are found on a number of Ford vehicles from the Focus to the Expedition, and about 60% of Ford's North American vehicle production. "This announcement represents more progress with our Way Forward plan," Mark Fields, Ford's president of The Americas, said. "The successful approach Ford is taking with our component operations -- including selling or idling our ACH facilities -- will help us achieve our commitment to reduce overall operating costs by $5 billion by the end of 2008." Other ACH businesses in negotiations for final agreement and sale include glass, fascias and fuel tanks, climate control systems, propshafts, and power transfer units. The ACH fuel rail business and its El Jarudo subsidiary were sold at the end of the first quarter. "The response from the marketplace has been better than expected," Al Ver, ACH CEO and COO and Ford Motor Company vice president, said. "We believe that is due, in large measure, to the significant improvement in the quality, on-time delivery and cost- effectiveness of our operations during the past year and a half." Automotive Components Holdings is a temporary company managed by Ford, which was established in October 2005 with former Visteon component operations. ACH's mission is to ensure the flow of quality components and systems while preparing the ACH automotive component operations for sale or idling. Today, the $4 billion company and its 12 plants are supported by about 12,000 full-time employees, mostly leased from Visteon or Ford. "Acquiring the Sandusky, Ohio facility is a logical extension of our engineering and manufacturing expertise in lighting," Richard Newsted, Meridian's president and CEO, said. "We are excited about the opportunity to improve the long-term competitive position of this operation and expand our strengths and capabilities in lighting technology." The sale is contingent upon reaching a new and competitive agreement with the United Auto Workers. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's $3-billion of senior convertible notes due 2036. GENERAL MOTORS: Joins Chrysler & Ford in Healthcare Fund -------------------------------------------------------- General Motors Corp., DaimlerChrysler AG's Chrysler Group, and Ford Motor Company are in talks to create an independent health- insurance fund to trim their combined $114 billion in future retiree healthcare obligations, Bloomberg News reports, quoting five people with direct knowledge of the talks as saying. According to the report, the U.S. automakers would each contribute to the fund to pay for healthcare benefits of United Auto Workers retirees, the sources said, requesting anonymity because the negotiations are private. The talks are preliminary so the fund's size and how much each company would contribute haven't been determined, they said. The car companies are trying to deal with healthcare costs that GM CEO Rick Wagoner says cost them a combined $12 billion in 2006. Providing health care to 2 million employees, retirees and dependents contributed to losses at each of the U.S. automakers last year, while Japanese rivals posted record profits, Bloomberg reveals. Under the proposal, the companies would contribute a percentage of their retiree liabilities to the fund, whose assets and investment proceeds would cover retiree medical benefits, Bloomberg relates. The idea is modeled after the Goodyear Tire & Rubber Co. healthcare plan, the people said. The Akron, Ohio-based tiremaker, with a healthcare liability of $1.3 billion for United Steelworkers of America retirees, agreed in December to set up a healthcare trust fund with a one-time $1 billion payment in cash and stock, after which, Goodyear will have no further healthcare obligation to current or future union retirees. The accord came after an 85-day strike, Bloomberg states. The joint fund is one of several ideas for cutting labor costs being weighed by U.S. automakers as they prepare for next month's contract negotiations with the United Auto Workers, the sources said. GM, Ford and Chrysler haven't decided whether to offer the proposal during the talks, which will replace the current four- year contract expiring in September 2007, Bloomberg quotes three of the sources as saying. The companies are exploring a single provider to reduce administration costs and overlapping services, they said. The union is aware of the discussions and is willing to consider the idea, one of the people familiar with the matter said, Bloomberg notes. GM, Ford and the UAW last year agreed to a court settlement requiring union retirees to pay part of their healthcare costs for the first time. Detroit-based GM and Ford, of Dearborn, Michigan, also pledged not to alter those retiree healthcare benefits until after 2011 without union consent. Last year's settlement, as well as benefit reductions for salaried workers, helped GM cut retiree healthcare liabilities by 21% to $64 billion at the end of last year, Bloomberg discloses. Ford had retiree obligations of US$31 billion, and Chrysler's potential future tab is about $19 billion. GM has already bought out 34,400 union workers, and Ford and Chrysler together are trying to persuade 50,000 to leave as they cut production to match market- share losses to Toyota Motor Corp. and Honda Motor Co. GM had about 357,000 union retirees in the U.S. at the end of last year, Bloomberg says. Ford reported 570,000 active union and non- union employees, retirees and dependents. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. As of March 31, 2007, GM's balance sheet showed a stockholders' deficit of $4,347,000,000, compared to a positive equity of $15,779,000,000 at March 31, 2006. * * * In May 2007, Fitch Ratings has downgraded General Motors Corporation's senior unsecured debt rating to 'B-/RR5' from 'B/RR4'. GM's Issuer Default Rating remains at 'B' and is still on Rating Watch Negative (along with the other outstanding ratings) by Fitch following the company's announcement that it will be raising $4.1 billion in secured financing and $1.1 billion in senior unsecured convertible securities. The $4.1 billion 364-day facility, to be secured by GM's common equity holdings in GMAC, will be assigned a rating of 'BB/RR1', while the senior unsecured convertible securities will be rated 'B-/RR5'. HOLLINGER INC: Dec. 31 Balance Sheet Upside-down by $73.3 Million ----------------------------------------------------------------- Hollinger Inc.'s consolidated balance sheet at Dec. 31, 2006, showed $172,210,000 in total assets and $245,589,000 in total liabilities, resulting in a $73,379,000 total stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2006, also showed strained liquidity with $48,000,000 in total current assets available to pay $219,712,000 in total current liabilities. Hollinger Inc. reported a net loss of $22,689,000 on total revenues of $1,758,000 for the third quarter ended Dec. 31, 2006, compared with a net loss of $18,950,000 on total revenues of $3,338,000 for the same period ended Dec. 31, 2005. The company's revenues are derived from dividends from its investment in Sun-Times and other investment income and, in respect of Editorial La Razon S.A. (ELR), which owns and publishes La Republica, a small circulation daily newspaper focused on the broader business community in Costa Rica, newspaper publishing. The decrease in revenue is mainly a result of the decision of the board of directors of Sun-Times on Dec. 13, 2006, suspending its dividend for the three month period ended Dec. 31, 2006. A quarterly dividend to $900,000 is included in dividend income in the three month period ended Dec. 31, 2005. In addition, newspaper publishing revenues decreased $300,000 year-over-year, mainly as a result of the approximate 15% decline in 2006 compared with 2005 in the average exchange rate in the local currency vis-.-vis the Canadian dollar. Net loss before taxes was $25.7 million for the three month period ended Dec. 31, 2006, compared with $23.0 million a year ago, an increase in the loss of $2.7 million, driven principally by: -- a reduction in revenues of $1.6 million; -- an increase of $11.8 million of the unrealized loss on investments in Sun-Times Class A and Class B shares and Series II preference shares. -- a negative year-over-year impact of $10.2 million relating to foreign exchange, and offset in part by the the year- over-year increase of $16.6 million relating to gain on sale of Domgroup Ltd.'s property in Toronto, Ontario; and a reduction of $2.8 million in professional and other expenses. Domgroup Ltd. is a subsidiary of Hollinger Inc. Full text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?20f6 About Hollinger Inc. Based in Toronto, Ontario, Hollinger Inc. (TSX: HLG.C)(TSX: HLG.PR.B) -- http://www.hollingerinc.com/-- owns approximately 70.1% voting and 19.7% equity interest in Sun-Times Media Group Inc. (formerly Hollinger International Inc.), a media company with assets which include the Chicago Sun-Times newspaper and Suntimes.com and a number of community newspapers and websites serving communities in the Chicago area. HSI ASSET: Moody's Rates Class M-10 Certificates at Ba1 ------------------------------------------------------- Moody's Investors Service assigned a Aaa rating to the senior certificates issued by HSI Asset Securitization Corporation Trust 2007-NC1 and ratings ranging from Aa1 to Ba1 to the subordinate certificates in the deal. The securitization is backed by New Century Mortgage Corporation originated, adjustable-rate (82%) and fixed-rate (18%), subprime mortgage loans acquired by HSBC Bank USA, National Association. The ratings are based primarily on the credit quality of the loans and on protection against credit losses by the subordination, excess spread, and overcollateralization. The ratings also benefit from both the interest-rate swap and interest-rate cap agreements, both provided by ABN AMRO Bank N.V. Moody's expects collateral losses to range from 6.95% to 7.45%. Countrywide Home Loans Servicing LP and Wells Fargo Bank, N.A. will service the mortgage loans and Wells Fargo Bank, N.A. will also act as master servicer to the mortgage loans. Moody's has assigned Wells Fargo its servicer quality rating of SQ1 as a servicer of subprime mortgage loans. The complete rating actions are: * HSI Asset Securitization Corporation Trust 2007-NC1 * Mortgage Pass-Through Certificates, Series 2007-NC1 Class A-1, Assigned Aaa Class A-2, Assigned Aaa Class A-3, Assigned Aaa Class A-4, Assigned Aaa Class M-1, Assigned Aa1 Class M-2, Assigned Aa2 Class M-3, Assigned Aa3 Class M-4, Assigned A1 Class M-5, Assigned A2 Class M-6, Assigned A3 Class M-7, Assigned Baa1 Class M-8, Assigned Baa2 Class M-9, Assigned Baa3 Class M-10, Assigned Ba1 ICONIX BRAND: Moody's Rates Proposed $250 Mil. Sr. Notes at B3 -------------------------------------------------------------- Moody's Investors Service affirmed Iconix Brand Group Inc.'s corporate family rating at B1 and assigned a B3 rating to the company's proposed $250 million convertible senior subordinated note offering. At the same time, Moodys' upgraded the company's probability of default rating to B1 from B2 and upgraded ratings on the company's $212.5 million secured term loan facility to Ba2 from B1. The rating outlook remains stable. The ratings assigned are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. The probability of default rating was upgraded to B1 from B2 as the overall family recovery rate assumption used by Moody's is now 50% as a result of the introduction of the senior subordinated notes into the capital structure which previously included only secured bank debt. The upgrade to the secured term loan rating reflects the improved probability of default rating of B1 as well as a reduced loss given default point estimate (to LGD2 -- 20% from LGD3 -- 35%) resulting from the increase in junior debt in the company's capital structure. The B3 rating for the proposed convertible senior subordinated notes reflects the probability of default rating of B1 as well as the loss given default assessment of LGD5 -- 77%), which reflects its subordination to existing secured term financings and obligations of Iconix's operating subsidiaries. These ratings have been upgraded, and assessments amended: -- Probability of Default Rating to B1 from B2 -- $212.5 million secured term loan to Ba2 (LGD2 -- 20%) from B1 (LGD3 -- 35%). These ratings have been affirmed: -- Corporate Family Rating: B1 These new ratings have been assigned: -- $250 million Convertible Senior Subordinated Notes -- B3 (LGD5 -- 77%) Based in New York, NY, Iconix Brand Group, Inc. owns, licenses and markets a portfolio of consumer brands including CANDIE'S(R), BONGO(R), BADGLEY MISCHKA(R), JOE BOXER(R), RAMPAGE(R), MUDD(R), LONDON FOG(R), MOSSIMO(R), OCEAN PACIFIC(R), DANSKIN(R) and ROCAWEAR(R). INTERPUBLIC GROUP: Provides Update on SEC Investigation ------------------------------------------------------- The Interpublic Group has disclosed a development in the investigation being conducted by the staff of the Securities and Exchange Commission into the company's restatements announced in 2002 and 2005. The company has received a "Wells notice," which invites the company to make a responsive submission before the staff makes a final determination concerning its recommendation to the Commission. Under recently revised settlement procedures, such a notice is now a prerequisite to settlement negotiations with the Commission staff. "Given our understanding of new procedures at the SEC, this development is not unanticipated and we believe that it moves us a step closer to resolution in this matter," said Interpublic Chairman and CEO Michael I. Roth. "We have been cooperating with the commission since the outset of its investigation in 2002 and it is our intention to share our point of view regarding settlement with them. We look forward to a prompt resolution to their deliberations." Background on 2002 and 2005 Restatements The company has previously made the following statements -- which continue to apply -- regarding its prior restatements and the material weaknesses that gave rise to them. In connection with the 2005 restatement, no current senior management within the operating units or in the corporate group acted inappropriately and those individuals who were found to have done so at the local level have been separated from the company. Also related to the 2005 restatement, the company has reserved against media and vendor credits and is well on its way to resolving those matters directly with its clients. The shortcomings in the company's control environment that led to the 2002 restatement to address imbalances in intercompany accounts did not involve the misuse of client funds. "During the past few years, we have moved to the highest standards of transparency and corporate governance," added Mr. Roth, "We continue to be on track to complete remediation of our control environment with the filing of our 2007 10-K." About Interpublic Group Based in New York City, Interpublic Group of Companies Inc. (NYSE: IPG) -- http://www.interpublic.com/-- is one of the world's leading organizations of advertising agencies and marketing services companies. Major global brands include Draftfcb, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Momentum, MRM Worldwide, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Carmichael Lynch, Deutsch, Hill Holliday, Mullen and The Martin Agency. * * * As reported in the Troubled Company Reporter on May 14, 2007, Fitch Ratings has upgraded Interpublic Group's Issuer Default Rating to 'BB-' from 'B'. Approximately $2.3 billion in total debt as of March 31, 2007 is affected. The Rating Outlook is Stable. J.P. MORGAN: Moody's Rates Five Certificate Classes at Low-B ------------------------------------------------------------ Moody's Investors Service assigned definitive ratings to securities issued by J.P. Morgan Chase Commercial Mortgage Securities Corp. Series 2007-CIBC19. The provisional ratings issued on May 30, 2007 have been replaced with these definitive ratings: -- Class A-1, $52,983,000, rated Aaa; -- Class A-2, $151,614,000, rated Aaa; -- Class A-3, $180,000,000, rated Aaa; -- Class A-4, $1,195,030,000, rated Aaa; -- Class A-SB, $117,589,000, rated Aaa; -- Class A-1A, $595,708,000, rated Aaa; -- Class A-M, $327,561,000, rated Aaa; -- Class A-J, $262,048,000, rated Aaa; -- Class B, $24,567,000, rated Aa1; -- Class C, $36,851,000, rated Aa2; -- Class D, $32,756,000, rated Aa3; -- Class E, $49,134,000, rated A2; -- Class F, $36,851,000, rated A3; -- Class G, $40,945,000, rated Baa1; -- Class H, $32,756,000, rated Baa2; -- Class J, $40,945,000, rated Baa3; -- Class K, $8,189,000, rated Ba1; -- Class L, $8,189,000, rated Ba2; -- Class M, $16,378,000, rated Ba3; -- Class N, $8,189,000, rated B1; -- Class P, $4,094,000, rated B2; -- Class NR, $40,945,503, rated NR; -- Class X, $3,275,606,503*, rated Aaa. *Approximate notional amount Moody's has assigned definitive ratings to these additional class of certificates: -- Class Q, $12,284,000, rated B3 Moody's has withdrawn the provisional ratings of these class of certificates: -- Class A-MFL, $50,000,000, WR; -- Class A-JFL, $50,000,000, WR; -- Class X-2, $0, WR. JOE SIVE: Case Summary & Two Largest Unsecured Creditors -------------------------------------------------------- Debtor: Joe Albino Sive 23130 Hatteras St Woodland Hills, CA 91367 Bankruptcy Case No.: 07-11888 Chapter 11 Petition Date: June 6, 2007 Court: Central District Of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: Stephen L. Burton, Esq. 15260 Ventura Boulevard, Suite 640 Sherman Oaks, CA 91403 Tel: (818) 501-5055 Fax: (818) 501-5849 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Litton Loan Servicing, $1,000,000 L.L.P. 4828 Loop Central Drive Houston, TX 77081 Specialized Loan Servicing, $220,624 L.L.C. 8742 Lucent Boulevard, Suite 300 Highlands Ranch, CO 80129 JOSEPH THOMAS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Joseph D Thomas Anna D. Thomas 1977 Horse Shoe Bend Road Dunedin, FL 34698 Bankruptcy Case No.: 07-04863 Chapter 11 Petition Date: June 8, 2007 Court: Middle District of Florida (Tampa) Judge: Michael G. Williamson Debtor's Counsel: Buddy D. Ford, Esq. 115 North MacDill Avenue Tampa, FL 33609 Tel: (813) 877-4669 Total Assets: $774,583 Total Debts: $1,255,353 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Advanta Bank Corp. credit card- $32,240 Attention: Disputes Farmer's Kitchen P.O. Box 30715 Salt Lake City, UT 84130 A.C.S./P.N.C. Bank Na Educational $31,563 501 Bleecker Street Utica, NY 13501 Amex credit card $28,985 P.O. Box 297871 Fort Lauderdale, FL 33329 American Express credit card $28,973 Bank of America credit card $24,349 Monogram Bank North credit card $24,349 America AT&T Universal/Citibank credit card $23,793 American Express credit card- $20,133 farmer's kitchen Visdsnb credit card $19,849 Macy's credit card $19,848 Columbus Bank & Trust credit card $19,490 Missouri Student Loans educational $17,822 Beneficial/Household check credit $14,873 Finance Pob 1547 or line of credit Wash Mutual/Providian credit card $12,341 Emerge/F.N.B.O. credit card $12,138 Fia C.S.N.A. credit card $11,486 Discover Fin credit card $10,653 Bank of America credit card $9,525 American Express credit card- $9,397 farmer's kitchen Chase credit card $9,116 LJVH HOLDINGS: Moody's Junks Rating on Proposed $125 Mil. Loan -------------------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating and a B2 Probability of Default Rating to LJVH Holdings Inc. in connection with the pending leveraged buyout of Van Houtte Inc. LJVH will be the direct holding company parent of Van Houtte upon the completion of the buyout. Concurrently, Moody's assigned a B1 to the $300 million proposed first lien credit facility and a Caa1 rating to the proposed $125 million second lien term loan. The rating outlook is stable. The leveraged buyout is expected to be financed with the proceeds from a $250 million senior secured first lien term loan, $125 million second lien term loan, a CDN$60 million (approximately $54 million U.S. Dollar equivalent) putable class A preferred stock investment by the Fonds de Solidarite des Travailleurs due Quebec, a $128 million perpetual class B preferred stock investment and a common equity investment of about $1.3 million. A $50 million first lien revolver is expected to be undrawn at close. LJVH will be the borrower under the first and second lien term loan facilities (except for a $30 million carve-out of the first lien term loan which will be borrowed by a U.S. operating subsidiary of Van Houtte) and a co-borrower with Van Houtte under the revolving credit facility. The B2 Corporate Family Rating is constrained by weak projected cash flow and interest coverage metrics, breakeven to moderately negative pretax income and modest geographic diversification. Despite a leading market position and brand in the gourmet coffee market in Canada, Van Houtte depends on the Quebec market for the majority of EBIT. The ratings are supported by a history of stable operating margins and positive growth trends for the gourmet coffee market. These ratings/(assessments) were assigned to LJVH.: -- $50 million 6 year first lien revolving credit facility, B1 (LGD3, 34%); -- $250 million 7 year first lien term loan facility, B1 (LGD3, 34%); -- $125 million 7.5 year second lien term loan facility, Caa1 (LGD5, 84%); -- Corporate Family Rating, B2; -- Probability of Default Rating, B2. The stable outlook anticipates modest organic revenue growth and stable EBIT margins over the next 12 to 18 months. Cash flow, leverage and interest coverage are expected to remain weak for the rating category during this period. Based in Montreal, Quebec, Van Houtte Inc. is a leading roaster, marketer and distributor of gourmet coffee in North America. The company operates in two primary segments of the coffee market- manufacturing/marketing and coffee services. For the fiscal year ended March 31, 2007, the company generated revenue of CDN$388 million. M. FABRIKANT: Employs P. Solomon Company as Financial Advisor ------------------------------------------------------------- M. Fabrikant & Sons Inc. and its affiliate, Fabrikant-Leer International, Ltd., obtained from the U.S. Bankruptcy Court for the Southern District of New York permission to employ Peter J. Solomon Company as their financial advisor, nunc pro tunc, to the bankruptcy filing. P. Solomon will: a. familiarize itself to the extent it deems appropriate and feasible with the business, operations, properties, financial condition and prospects of the Debtors, and, to the extent relevant, any prospective buyer, it being understood that P. Solomon will, in the course of familiarization, rely entirely upon information supplied by the Debtors or other relevant parties, including the buyer and the Debtors' counsel, without assuming any responsibility for independent investigation of verification; b. assisit the Debtors in the preparation of descriptive information concerning the Debtors, based on information provided by the Debtors, teh reasonableness, accuracy and completeness of which information P. Solomon will not be required to investigate and about which the firm will express no opinion; c. review and analyze the business plans and financial projections prepared by the Debtors; d. evaluate the Debtors' liquidity needs, potential debt capacity and capitalization based on their projected earnings and cash flows; e. assist the Debtors with developing various financial models and projections to be used in conjunction with a transaction; f. assist the company with developing and presenting various reporting and informational requirements as may be required from time to time by its senior bank debt holders; g. advise and assist the Debtors in identifying and contacting potential transaction sponsors;] h. assist the Debtors in conducting presentations and due diligence meetings with prospective transaction sponsors; i. advise and assist the Debtors in developing a general strategy for accomplishing a transaction, as well as its form and structure; j. periodically advise the Debtors as to the status of dealings with any parties involved in a transaction and will advise and assist the Debtors in the course of its negotiations, execution and closing of any transaction; k. advise and assist management of the Debtors in making presentations to the Debtors' board of directors concerning general strategy and any proposed transaction; l. participate as an advisor to the Debtors in negotiating and implementing a transaction; and m. render other financial advisory services as may from time to time be agreed upon by P. Solomon and the Debtors. The Debtors will pay P. Solomon: a. $100,000 monthly advisory fee; b. reimbursement of all reasonable and actual out-of-pocket expenses; and c. commission-based fee based on either a restructuring, financing or sale transaction. The Debtors assure the Court the P. Solomon does not hold or represent an interest adverse to the estate, and that they are disinterested persons. The firm can be reached at: Peter J. Solomon Company 520 Madison Avenue New York, NY 10022 Telephone: (212) 508-1600 Fax: (212) 508-1633 http://www.pjsolomon.com/ Headquartered in New York City, M. Fabrikant & Sons Inc. -- http://www.fabrikant.com/-- sells diamonds and jewelries. The company and its affiliate, Fabrikant-Leer International, Ltd., filed for chapter 11 protection on Nov. 17, 2006 (Bankr. S.D.N.Y. Case Nos. 06-12737 & 06-12739). Mitchel H. Perkiel, Esq., at Troutman Sanders LLP, represent the Debtors. Alan D. Halper, Esq., at Halperin Battaglia Raicht LLP, and Christopher J. Caruso, Esq., at Moses & Singer, LLP, represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. MYRNA SEGUNDO: Case Summary & Seven Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Myrna Acenas Segundo 341 Molokai Akau Street Kahului, HI 96732 Bankruptcy Case No.: 07-00616 Chapter 11 Petition Date: June 14, 2007 Court: District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Ramon J. Ferrer, Esq. 135 South Wakea Avenue, Suite 212 Kahului, HI 96732 Tel: (808) 877-3682 Fax: (808) 871-9557 Total Assets: $4,117,350 Total Debts: $3,400,000 Debtor's List of its Seven Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Deutsche Bank First Mortgage $585,000 National Trust Co. on Real Property c/o Washington Mutual Bank 9451 Corbin Avenue Northridge, CA 91324 Bayview Loan Servicing, LLC First Mortgage on $570,000 4425 Ponce Road Real Property Coral Gables, FL 33146 GRP Loan, LLC First Mortgage on $570,000 445 Hamilton Avenue Real Property 8th Floor White Plains, NY 10601 Saxon Mortgage First Mortgage on $535,000 P.O. Box 161061 Real Property Fort Worth, TX 76164-1278 Ronald H.B. and Connie Kim Second Mortgage on $400,000 c/o Joy Yanagida, Esq. Real Property 33 Maluhia Drive, Suite 201 Wailuku, HI 96793 Oowen Federal Bank FSB Second Mortgage on $276,000 12650 Ingenuity Drive Real Property Orlando, FL 32826 Washington Mutual Bank Second Mortgage on $72,500 Real Property NELSON EDUCATION: Moody's Puts Corporate Credit Rating at B2 ------------------------------------------------------------ Moody's Investors Service assigned a B2 corporate family rating to Nelson Education Ltd., a company formed by OMERS Capital Partners and Apax Partners to hold their investment in various companies that operate a leading Canadian educational publishing services company being jointly acquired from Thomson Corporation (A3/RURD). Concurrently, Moody's assigned a Ba3 LGD3 rating to the company's CDN$50 million revolving credit facility and its CDN$330/US$310 million term loan B, and a Caa1 LGD5 rating to its CDN$181.5/US$171 million second lien term loan. The rating outlook is stable. Assignments: * Issuer: Nelson Education Ltd. -- Probability of Default Rating, Assigned B2; -- Corporate Family Rating, Assigned B2; -- Senior Secured Bank Credit Facility, Assigned a range of 32 - LGD3 to Ba3; -- Senior Secured Bank Credit Facility, Assigned a range of 32 - LGD3 to Ba3; -- Senior Secured Bank Credit Facility, Assigned a range of 84 - LGD5 to Caa1. The ratings are influenced primarily by nominal levels of free cash flow and aggressive financial leverage. FCF is expected to average only CDN$10 million per year over the next three years. This leaves little room for error should expenses vary from expected levels, or should revenue and margin expansion not meet expectations. As well, nominal FCF combined with a significant proportion of the purchase being financed with debt causes FCF/TD to be only approximately 2% and TD/Revenues exceed 250%. Both of these metrics indicate significant leverage. The ratings also account for stratified access to realization proceeds should there be a default. Accordingly, the credit facilities with the most advantageous access, the secured revolving credit facility and term loan B are rated Ba3 LGD3. Next in line is the CDN$181.5/US$171 million second lien term loan at Caa1 LGD5. Nelson Education has a strong business profile. With this and the PIK interest feature imbedded in the second lien term facility, near-term downside risk appears to be contained. However, with expected nominal FCF over the near-to-mid term, significant de- leveraging is not expected. Accordingly, with the financial profile expected to be unchanged, the ratings outlook is stable. Headquartered in Toronto, Ontario, Canada, Nelson Education is a privately owned leading provider of publishing services for the Canadian educational market. NELSON EDUCATION: S&P Junks Rating on Planned CDN$181.5MM Loan --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Toronto-based Nelson Education Ltd., a company formed to enable private equity firms OMERS Capital Partners and Apax Partners to purchase the Canadian division of educational publisher Thomson Learning Inc. (previously unrated; however, the U.S. division, TL Holdings II LP, was recently rated B/Stable/--) from The Thomson Corp. (A-/Watch Neg/--) for CDN$639 million. The outlook is stable. At the same time, Standard & Poor's assigned ratings to Nelson Education's planned CDN$561.5 million bank facility. First, the company's CDN$50 million first-lien revolving credit facility was assigned a 'BB-' senior secured bank loan rating, with a recovery rating of '1'. The '1' recovery rating indicates an expectation of very high (90%-100%) recovery of principal in the event of a payment default. Second, S&P assigned a 'B+' senior secured bank loan rating, with a recovery rating of '2', to Nelson Education's planned CDN$330 million first-lien term loan B. The '2' recovery rating indicates an expectation of substantial (70%-90%) recovery of principal in the event of a payment default. Although both facilities have a first lien on all collateral, the revolving credit facility holds a super-priority position in the disposition of proceeds from the collateral in the event of a default. In addition, S&P assigned a 'CCC+' senior secured bank loan rating, with a recovery rating of '6', to the company's planned CDN$181.5 million second-lien term loan, indicating an expectation of a negligible (0%-10%) recovery of principal in the event of a payment default. The second-lien term loan is rated two notches below the corporate credit rating because of the significant amount of first-lien priority debt in the capital structure as a percentage of total assets, and the resultant minimal residual value in a downside scenario. Proceeds from the bank facilities will be used to help fund the purchase of Nelson Education. "The ratings on Nelson Education reflect its high financial risk resulting from the leveraged acquisition of the Canadian business," said Standard & Poor's credit analyst Lori Harris. "This is only slightly offset by the company's strong business position in the educational publishing industry and its stable operating performance," Ms Harris added. The outlook is stable. S&P expect Nelson Education's operating performance to remain stable in the medium term, driven by its strong market positions in both the higher education and school segments. A negative outlook would be considered if the company's liquidity position weakened or if it were unable to reduce leverage as planned. Although unlikely because of very high debt leverage, the outlook could be revised to positive if the company demonstrates a financial policy consistent with a higher rating and reduces its debt leverage substantially through sustainable earnings growth and lower debt balances. NEW CENTURY: Court Okays FTI as Committee's Financial Advisor ------------------------------------------------------------- The Official Committee of Unsecured Creditors in New Century Financial Corporation and its debtor-affiliates chapter 11 cases obtained authority from the U.S. Bankruptcy Court for the District of Delaware to retain FTI Consulting Inc. as its financial advisor, nunc pro tunc to April 9, 2007. The Court's approval provides these conditions: (a) the U.S. Trustee will have and retain the right to object on all grounds to FTI's interim and final fee applications, including monthly fees and the Completion Fee; and (b) subject to Court approval, the completion fee will be considered earned and payable upon the earliest occurrence of the confirmation of a plan of reorganization or a plan of liquidation, or the sale of substantially all of the Debtors' tangible assets, whether in one transaction or multiple transactions. The Court rules that in the event that the Debtors' bankruptcy cases are converted to cases under Chapter 7 of the Bankruptcy Code, FTI reserves the right to assert that the completion fee is earned and payable upon conversion. Engagement Terms Pursuant to the engagement agreement, the Committee expects FTI to: (a) assist and advice with respect to the Debtors' disposition of assets; (b) assist in the review of financial information distributed by the Debtors to creditors and others, including cash flow projections and budgets, cash receipts and ] disbursement analysis, analysis of various asset and liability accounts, and analysis of the proposed transactions for which Court approval is sought; (c) assist Creditors Committee in the review of financial- related disclosures required by the Court, including Schedules of Assets and Liabilities, Statement of Financial Affairs and Monthly Operating Reports; (d) assist in the review of the Debtors' proposed key employee retention, incentive and other critical employee benefit programs; and (e) assist in the review and preparation of information and analysis necessary for the confirmation of a plan in the Debtors' Chapter 11 cases. The Debtors will pay FTI $150,000 per month for the first three months and $100,000 per month thereafter. A completion fee of $650,000, plus reimbursement of actual and necessary expenses incurred by FTI, will be paid. To the extent that FTI is requested to provide forensic and litigation consulting services, FTI will be paid for the services on an hourly basis, plus reimbursement of actual and necessary expenses. The firm's customary rates are: Senior Managing Directors $525 - $700 Directors/Managing Directors $350 - $590 Consultants/Sr. Consultants $215 - $420 Administration/ $75 - $185 Paraprofessionals Samuel E. Star, a senior managing director at FTI, stated that the firm has provided and could reasonably expect to continue to provide services unrelated to the Debtors' case for certain parties-in-interest. Mr. Star noted that before bankruptcy filing, FTI provided assistance to New Century Mortgage Corporation, a Debtor- affiliate, in analyzing its marketing database for purposes of determining the class size in a potential lawsuit and measuring potential exposure in a California wage rules lawsuit in 2006. The engagements were unrelated to the Debtors' Chapter 11 cases and were terminated before bankruptcy filing. FTI had incurred $176,532 in aggregate fees and expenses, and received payment for $134,620 for services rendered. The remaining balance has been written off. Mr. Star disclosed that George P. Stamas, Esq., a partner at Kirkland & Ellis, which is representing Greenwich Capital Financial Products, Inc., CIT Group/Business Credit, Inc., and Citigroup Global Markets Realty Corp., is currently a member of FTI's Board of Directors. Mr. Stamas is in no way involved with the Kirkland & Ellis team in these proceedings, nor does he have any professional involvement in this matter in any capacity, Mr. Star assured the Court. FTI has performed in the past, and may perform in the future, advisory consulting services for various attorneys and law firms, some of whom may be involved in the proceedings, Mr. Star said. None of the relationships create interests materially adverse to the Creditors Committee in matters upon which FTI is to be employed, he added. About New Century Founded in 1995, Irvine, Calif.-based New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. The Official Committee of Unsecured Creditors selected Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its co-counsel. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a chapter 11 plan expires on July 31, 2007. (New Century Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NEW CENTURY: Court Okays Hahn & Hessen as Committee's Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave the Official Committee of Unsecured Creditors in New Century Financial Corporation and its debtor-affiliates' chapter 11 cases authority to retain Hahn & Hessen as its bankruptcy counsel effective as of April 9, 2007. Hahn & Hessen will: -- render legal advice to the Committee with respect to its duties and powers in the case; -- assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses, the desirability of continuance of those businesses, and any other matters relevant to the chapter 11 cases or to the Debtors' business affairs; -- advise the Committee with respect to any proposed sale of the Debtors' assets or a sale of the Debtors' business operations and any other relevant matters; -- advise the Committee with respect to any proposed plan of reorganization and the prosecution of claims against third parties, if any, and any other matters relevant to the cases or to the formulation of a plan; -- assist the Committee in requesting the appointment of a trustee or examiner pursuant to Section 1104 of the Bankruptcy Code, if necessary and appropriate; and -- perform other legal services, which may be required by, and which are in the best interests of, the unsecured creditors, which the Committee represents. Hahn & Hessen will be paid for its services pursuant to its customary hourly rates: Partners $500 - $650 Associates $200 - $400 Special counsel and Of counsel $450 - $625 Paralegals $180 - $200 The firm's necessary out-of-pocket expenses will be reimbursed. Hahn & Hessen has not received any retainer from the Committee or anyone else, Jeffrey L. Schwartz, Esq., a member of Hahn & Hessen, disclosed. Mr. Schwartz assured the Court that Hahn & Hessen is a disinterested person within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Schwartz, however, noted that Hahn & Hessen represents certain parties-in-interest to the Debtors' cases in wholly unrelated matters, including Lehman Brothers, Inc.; JPMorgan Chase Bank, N.A.; Greenwich Capital, the Debtors' DIP Lender; Bear Stearns & Co.; HSBC Bank USA, NA; Citibank N.A.; and Bank of America; GMAC Commercial Finance; The CIT Group; Bank Leumi; and General Electric Corp. Mr. Schwartz says his firm will not represent the Committee in any adversary proceeding or contested matters involving these entities, but will defer to the Committee's co-counsel or special counsel. About New Century Founded in 1995, Irvine, Calif.-based New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. The Official Committee of Unsecured Creditors selected Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its co-counsel. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a chapter 11 plan expires on July 31, 2007. (New Century Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ORCHESTRA THERAPEUTICS: Mar. 31 Balance Sheet Upside-Down by $10MM ------------------------------------------------------------------ Orchestra Therapeutics Inc. reported a net loss of $1,917,000 on revenues of $4,000 for the first quarter ended March 31, 2007, compared with net income of $95,573,000 on revenues of $11,000 for the same period ended March 31, 2006. The company has not received any revenues from the sale of products and does not expect to derive revenue from the sale of any products earlier than 2012, if at all. Results for the first quarter ended March 31, 2006, included a gain on warrant liability marked to fair value of $114,659,000, compared to a gain on warrant liability marked to fair value of $3,856,000 for the first quarter of 2007. The decrease in the gain recorded is attributable to a decrease in the change in the company common stock price since the prior measurement date, combined with the expiration of the 2006 Private Placement warrants. Results for the first quarter of 2006 also included a non-cash charge to operations of $14,095,000 representing beneficial inducement cost associated with the Note Exchange and Note Revision transactions with Cheshire, compared to a non-cash charge to operations of $940,000 representing beneficial inducement cost associated with the Warrant Exercise and Price Protection arrangement in the first quarter of 2007. Research and development expenditures for the three months ended March 31, 2007, were $2,269,000 as compared to $2,463,000 for the corresponding period in 2006. General and administrative expenses for the three months ended March 31, 2007, were $1,473,000 as compared to $1,329,000 for the corresponding period in 2006. The primary reason for the increase in general and administrative expenses was an increase of approximately $470,000 in investor and public relations activities for the quarter ended March 31, 2007 as compared to the quarter ended March 31, 2006. Partially offsetting the increased expenditures on public relations activities was a $170,000 decrease in share-based accounting expenses, combined with a decrease in bonus accruals for executive officers. Interest expense decreased to $1,130,000 for the three months ended March 31, 2007, as compared to $1,230,000 for the corresponding period in 2006. At March 31, 2007, the company's balance sheet showed $5,784,000 in total assets and $16,555,000 in total liabilities, resulting in a $10,771,000 total stockholders' deficit. The company's balance sheet at March 31, 2007, also showed strained liquidity with $2,658,000 in total current assets available to pay $11,342,000 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?20fc Going Concern Doubt As reported in the Troubled Company Reporter on April 19, 2007, LevitZacks in San Diego, California expressed substantial doubt on Orchestra Therapeutics Inc., fka The Immune Response Corp.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's net losses since inception, accumulated deficit of $153.4 million, stockholders' deficit of $10.9 million, and working capital deficiency of $6 million as of Dec. 31, 2006. LevitZacks also added that the company has negative cash flows from operations and does not have, and does not expect to have for the foreseeable future, a product from which to generate revenue. About Orchestra Therapeutics Headquartered in Carlsbad, California, Orchestra Therapeutics Inc., formerly The Immune Response Corp., (OTC BB: OCHT) -- http://www.imnr.com/-- is an immuno-pharmaceutical company focused on the discovery and development of novel treatments for autoimmune diseases. The company's lead immune-based therapeutic product candidate is NeuroVax(TM) for the treatment of multiple sclerosis (MS). PENN TREATY: S&P Holds B Ratings and Retains Negative CreditWatch ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' counterparty credit and financial strength ratings on Penn Treaty Network America Insurance Co. The ratings remain on CreditWatch with negative implications. This action follows the recent announcement by the Florida Office of Insurance Regulation that the company's certificate of authority to conduct business in Florida has been suspended for a period of at least 12 months because the company did not file its 2006 audited statutory financial statements by June 1, 2007. Florida constituted 5.9% of PTNA's new business applications in the first five months of 2007. The company is pursuing a stay of the order or a reversal and is working with the Florida OIR to reach a solution as it finalizes its audited statutory financial statements. "Standard & Poor's expects that PTNA will complete its statutory audit by June, 30, 2007," said Standard & Poor's credit analyst Neal Freedman. PTNA's parent company, Penn Treaty American Corp., is expected to file its year-end 2006 10-K by Aug. 15, 1007. "Should the company fail to complete these items by the deadlines," Mr. Freedman said, "We would view it as a serious lack of control over its financial reporting function and would likely lower the ratings by one notch." PEOPLE'S CHOICE: Wants August 31 Set as General Claims Bar Date --------------------------------------------------------------- People's Choice Financial Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Central District of California to establish Aug. 31, 2007, as the deadline for filing proofs of claim or interest pursuant to Sections 501 and 503 of the Bankruptcy Code. J. Rudy Freeman, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, in Los Angeles, California, states that the Bar Date is necessary for the Debtors and other parties-in-interest to determine the total amount, number and types of claims or interests that are asserted against or in the estates. Setting the Bar Date will facilitate the wind up and administration of the estates as efficiently and promptly as possible, he adds. A notice of the Bar Date will also be served upon all known creditors and parties requesting special notice upon entry of an order granting the Debtors' request. Mr. Freeman says that the Bar Date Notice advises interested parties of, among others: -- the Bar Date of August 31, 2007, for parties to file proofs of claim or interest; -- the need to file proofs of claim or interest with the Court on or before the Bar Date; and -- the name and address of the party upon which a copy of the proof of claim or interest must be served. Mr. Freeman tells the Court that parties will have at least 60 days' notice of the Bar Date and ample opportunity to prepare and submit a proof of claim or interest. About People's Choice Headquartered in Irvine, California, People's Choice Financial Corp. -- http://www.pchl.com/-- is a residential mortgage banking company, through its subsidiaries, originates, sells, securitizes and services primarily single-family, non-prime, residential mortgage loans. The company and two of its affiliates, People's Choice Home Loan, Inc., and People's Choice Funding, Inc., filed for chapter 11 protection on March 20, 2007 (Bankr. C.D. Calif. Case No. 07- 10772). J. Rudy Freeman, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, represents the Debtors. Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. At March 31, 2006,the Debtors' financial conditions showed total assets of $4,711,747,000 and total debts of $4,368,966,000. The Debtors' exclusive period to file a chapter 11 plan expires on July 18, 2007. (People's Choice Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). PHILLIPS-VAN: Good Performance Cues S&P's Positive CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on New York City-based Phillips-Van Heusen Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The apparel company had about $400 million in debt outstanding at May 6, 2007. "The CreditWatch action follows PVH's first-quarter results that reflected a continuation of positive operating momentum for the past several quarters," said Standard & Poor's credit analyst Susan Ding. For the latest quarter, revenue rose 17% from a year earlier, primarily due to higher royalty income from its Calvin Klein franchise, especially in fragrances, and better product mix. Operating margins also improved due to growth in royalty revenue and better sell-throughs in the wholesale dress shirt and retail businesses. PVH's credit protection measures have been improving steadily and are currently above the rating medians. Standard & Poor's will review the company's financial and operating strategies to resolve the CreditWatch listing. RBCE INVESTMENT: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: RBCE Investment Group LLC 23929 Valencia Boulevard, Suite 309 Santa Clarita, CA 91354 Bankruptcy Case No.: 07-10817 Type of Business: The Debtor filed for Chapter 11 protection on May 17, 2007 (Bankr. C.D. Calif. Case No. 07-10636). Chapter 11 Petition Date: June 14, 2007 Court: Central District Of California (Santa Barbara) Judge: Robin Riblet Debtor's Counsel: Peter Susi, Esq. Michaelson Susi and Michaelson 7 West Figueroa, 2nd Floor Santa Barbara, CA 93101-31918 Tel: (805) 965-1011 Fax: (805) 965-7351 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. REMY INTERNATIONAL: To File Prepackaged Chapter 11 Protection ------------------------------------------------------------- Remy International Inc., said Friday that it had reached agreement with holders of approximately: * 83% of its 8-5/8% Senior Notes, * 84% of its 9-3-8% Senior Subordinated Notes, and * 75% of its 11% Senior Subordinated Notes, on the terms of a consensual financial restructuring that would reduce the company's debt obligations by approximately $360 million. The company and the consenting noteholders have entered into a Plan Support Agreement pursuant to which the noteholders have agreed to consummate the restructuring through a prepackaged plan of reorganization. "We have reached a major milestone toward achieving our goal of substantially reducing our debt burden. Once our financial restructuring is completed, Remy's capital structure will provide a foundation for sustainable profitability and better position the Company to meet the challenges of our industry head on," said President and Chief Executive Officer John Weber. A key feature of the prepackaged plan is that all trade creditors, suppliers, customers and employees will receive amounts owed to them in the ordinary course of business. The company intends to begin soliciting votes on the prepackaged plan from holders of its unsecured notes promptly following conclusion of key customer negotiations. Following the solicitation period, the company expects to commence a prepackaged Chapter 11 proceeding in order to implement the plan. The proceeding is expected to last between 45 and 60 days. "This ensures trade creditors, suppliers, customers and employees see no difference in Remy's operations while we complete our recapitalization. The reorganization plan will provide for uninterrupted payment of our existing and future obligations to these constituents and provide for seamless continuation of our operations," Mr. Weber commented. DIP & Exit Financing In conjunction with the anticipated prepackaged restructuring, Remy is in the process of obtaining both debtor-in-possession financing and an approximately $330 million senior secured exit credit facility, the latter to become effective upon consummation of the prepackaged plan. The company anticipates that the exit financing will consist of a term loan of approximately $205 million, with the remainder as a $125 million revolving credit facility. The company is making substantial progress in renegotiating certain key commercial agreements to improve margins, its other stated objective with respect to strengthening the company. "In addition to consensually improving the capital structure, I am very pleased by the cooperative nature of discussions with certain customers. The spirit of cooperation exhibited by both our noteholders and key customers are essential for Remy to continue as a strong industry player," said Mr. Weber. Terms of the Prepackaged Plan The significant elements of the prepackaged plan include: - Repaying the Second Priority Senior Secured Floating Rate Notes in full. - Raising $75 million in preferred equity through a rights offering to be made to holders of the company's Senior Notes and Senior Subordinated Notes. - Exchanging the company's existing 8-5/8% Senior Notes for $100 million of new third-lien Pay-in-Kind Notes and approximately $50 million in cash. - Converting the 9-3/8% Senior Subordinated Notes and 11% Senior Subordinated Notes into 100% of the common equity of the reorganized company. - Cancelling all of the company's existing equity interests. "[Fri]day's very positive announcement is the result of extensive negotiations with our stakeholders and hard work with key customers, and we believe that it provides the highest value and best outcome for all of Remy's constituents," said Mr. Weber. In light of the agreement, Remy elected to not make the June 15 interest payment in respect of the 8-5/8% Senior Notes. Headquartered in Anderson, Indiana, Remy International Inc. -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. RESMAE MORTGAGE: Exits from Chapter 11 Bankruptcy Protection ------------------------------------------------------------ ResMAE Mortgage Corporation on Friday emerged from Chapter 11 with renewed strength and commitment to delivering best in class products and services in the non-conforming mortgage marketplace. ResMAE emerges from Chapter 11 as an entity wholly-owned by RMC Mortgage Holdings, an affiliate of Citadel Investment Group, L.L.C. Among the company's restructuring accomplishments, ResMAE: * Refocused its sales efforts to create stronger broker relationships and increase production. * Enhanced the origination process to provide for greater efficiency and quality service. * Strengthened the credit review process to increase overall loan quality. Jack Mayesh, Chairman of ResMAE, said: "[Fri]day's announcement is a testament to the commitment and dedication of our team. We have continued to operate throughout the reorganization process and emerge as an organization stronger and better positioned to meet the challenges in the marketplace." Rick Skogg, ResMAE's newly appointed President, commented: "ResMAE has demonstrated an unwavering commitment to providing excellent customer service to its clients throughout its history, including the challenging period over the past several months. We stand ready to continue to deliver on that commitment and are on course to become an industry leader." Plan Confirmation On June 5, 2007, the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware confirmed the Debtor's Plan of Reorganization, paving the way for ResMAE to emerge from Chapter 11. Asset Sale As reported in the Troubled Company Reporter on March 8, 2007, Citadel Investment won the auction for the Debtor's assets and business for $180 million. The bid included $20 million for the Debtor's lending platform and 98.5 cents on the dollar for the loan portfolio of $160 million. About Citadel Investment Citadel is one of the world's leading financial institutions focused on alternative asset management strategies. The Citadel group of companies employ over 1,000 professionals at headquarters in Chicago and across its offices around the world, including New York, San Francisco, London, Hong Kong and Tokyo. About ResMAE Mortgage Corp. Based in Brea, California, ResMAE Mortgage Corp. -- http://www.resmae.com/-- is a subsidiary of ResMAE Financial Corp., a specialty finance company engaged in the business of originating, selling, and servicing subprime residential mortgage loans. The company serves the needs of borrowers who do not conform to traditional "A" credit lending criteria due to credit history, debt to income ratios, or other factors. It has regional processing centers nationwide, including Northern and Southern California, Texas, New Jersey, Illinois, Florida and Hawaii. ResMAE Mortgage filed for chapter 11 protection on Feb. 12, 2007 (Bankr. D. Del. Case No. 07-10177). Daniel J. DeFranceschi, Esq. and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., represent the Debtor in its restructuring efforts. Adam G. Landis, Esq., and Richard Scott Cobb, Esq., at Landis Rath & Cobb LLP serve as counsel to the Official Committee of Unsecured Creditors. As of Feb. 28, 2007, the Debtor's balance sheet showed total assets of $255,429,000 and total debts of $254,062,000. RIM SEMICONDUCTOR: April 30 Balance Sheet Upside-down by $1.6 Mil. ------------------------------------------------------------------ Rim Semiconductor Company's balance sheet at April 30, 2007, showed $7,058,491 in total assets and $8,705,387 in total liabilities, resulting in a $1,646,896 total stockholders' deficit. The company's balance sheet at April 30, 2007, also showed strained liquidity with $450,317 in total current assets available to pay $8,702,647 in total current liabilities. Rim Semiconductor Company reported a net loss of $121,819 for the second quarter ended April 30, 2007, compared with a net loss of $9,676,846 for the same period ended April 30, 2006. The company had no revenues for the three months ended April 30, 2007. Revenues for the three months ended April 30, 2006, were $18,698 and were entirely from the entertainment business. The decrease in net loss is primarily due to the decrease in interest expense, the gain on the change in fair value of derivative liabilities, and the decrease in amortization of deferred financing costs. In addition, the company recorded a loss on exchange of notes payable into common stock of $446,386 in the second quarter of 2006, absent in 2007. Total operating expenses increased 1% or $26,295 to $1,840,388 for the three months ended April 30, 2007, from $1,814,093 for the three months ended April 30, 2006. Interest expense decreased 98% or $6,498,797 to $154,016 for the three months ended April 30, 2007, from $6,652,813 for the three months ended April 30, 2006. The decreases are primarily due to the value allocated to the warrants related to the 2006 Debentures for the three months ended April 30, 2006, that did not occur in 2007, offset by an increase in amortization and write-off of debt discount due to increased conversions of convertible debentures during the three months April 30, 2007, as compared to the three months ended April 30, 2006. The company also recognized a gain of $1,900,394 on the change in fair value of derivative liabilities for the three months ended April 30, 2007, a change of $2,360,794 or 513% from $460,400 for the three months ended April 30, 2006. The gain was due primarily to a decrease in the market price of common stock during the three months ended April 30, 2007, as compared to three months ended April 30, 2006. The amortization of deferred financing costs decreased 87% or $283,691 to $41,161 for the three months ended April 30, 2007, from $324,852 for the three months ended April 30, 2006. Other expenses were also higher during the three months ended April 30, 2006, due to the loss recognized on exchange of notes payable into common stock of $446,386. Full-text copies of the company's consolidated financial statements for the quarter ended April 30, 2007, are available for free at http://researcharchives.com/t/s?20ff About Rim Semiconductor Headquartered in Portland, Oregon, Rim Semiconductor Company (OTC BB: RSMI.OB) -- http://www.rimsemi.com/-- develops technology for telecommunications companies to deliver demanding new video and data services with lower network costs. The company's products allow data to be transmitted at greater speed and across extended distances over existing copper wire-all with the highest quality of service-for a better end-user experience. RONALD BARNETT: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Ronald Bruce Barnett 1671 Bulevar Menor Pensacola Beach, FL 32561 Tel: (850) 932-8024 Bankruptcy Case No.: 07-30529 Chapter 11 Petition Date: June 6, 2007 Court: Northern District of Florida (Pensacola) Debtor's Counsel: J. Steven Ford, Esq. Wilson, Harrell & Smith, P.A. 307 South Palafox Street Pensacola, FL 32502 Tel: (850) 438-1111 Fax: (850) 432-8500 Total Assets: $4,375,943 Total Debts: $2,811,219 The Debtor did not file a list of its 20 largest unsecured creditors. RONCO CORPORATION: Files for Protection Under Chapter 11 -------------------------------------------------------- Ronco Corporation and its affiliate, Ronco Marketing Corporation, on June 14, 2007, filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Central District Of California. Citing Chief Executive Officer John Reiland, Bloomberg reports that the company plans to seek Court approval of a sale. Bloomberg also quotes Mr. Reiland as saying that the company isn't going out of business but didn't name a potential buyer. Ronco Corp. -- http://www.ronco.com/-- (PINK:RNCP) manufactures, sources, markets, and distributes proprietary branded consumer products for use in kitchen and home. The company's products include the Veg-O-Matic and Pocket Fisherman, among others. RONCO CORP: Case Summary & 24 Largest Unsecured Creditors --------------------------------------------------------- Lead Debtor: Ronco Corporation 61 Moreland Road Simi Valley, CA 93065 Tel: (805) 433-1030 Bankruptcy Case No.: 07-12000 Debtor affiliate filing separate Chapter 11 petition: Entity Case No. ------ -------- Ronco Marketing Corporation 07-12001 Type of Business: The Debtor engages in manufacturing, sourcing, marketing, and distributing proprietary branded consumer products for use in kitchen and home. See http://www.ronco.com/ Chapter 11 Petition Date: June 14, 2007 Court: Central District Of California Judge: Geraldine Mund Debtors' Counsel: Stacia A. Neeley, Esq. Klee, Tuchin, Bogdanoff and Stern, L.L.P. 2121 Avenue of the Stars, 33rd Floor Los Angeles, CA 90067 Tel: (310) 407-4000 Fax: (310) 407-9090 Assets Debts ------ ----- Ronco Corporation $13,879,000 $32,736,000 Ronco Marketing Corporation $1 Million to $1 Million to $100 Million $100 Million A. Ronco Corporation's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Popeil Inventions (and acquisition $11,777,534 other entities owned by indebtedness Ron Popeil) 1672 Waynecrest Drive Beverly Hills, CA 90210 Attention: Ron Popeil Tel: (310) 273-4411 Fax: (310) 273-4483 Richard F. Allen lawsuit $1,500,000 4607 Lakeview Canyon Road, No. 316 Westlake Village, CA 91361 Attention: Richard F. Allen Tel: (818) 879-0774 Fax: (800) 434-5134 Liveops.Com, Inc. trade debt $1,080,182 P.O. Box 49017 San Jose, CA 95161-9017 Attention: Jason Lay Tel: (950) 461-1017 Fax: (950) 332-2276 Guang Dong Xinbao trade debt $1,065,894 Holdings, Co. Zhenghe South Road, Leilu Town, Foshan City, Guangdong Province, China Attention: Lydia Zhu Tel: (86) 757-2533-3888 Fax: (86) 757-2533-6531 Threesixty Sourcing trade debt $916,570 Hong Kong, Ltd. 3/F, 100 Li Wan Road GuangZhou, China Attention: Emily Liu Tel: (86) 852-3408-2200 Fax: (86) 852-2243-5091 Korean Export Insurance settlement & $913,642 915 Wilshire Boulevard, promissory note Suite 1640 Los Angeles, CA 90017 Attention: Byung-Yang Choo, Chief Representative Tel: (213) 622-4314 Fax: (213) 622-5316 Human Electronics Co., trade debt $476,153 Ltd. 273-6 Oseon-Dong, Gwangsan-Gu Gwangji City, Korea 506-253 Attention: Daniel Chang, Esq. Tel: (86) 228-8853-8234 Fax: (86) 228-8853-8982 Federal Express Corp. trade debt $355,601 P.O. Box 7221 Pasadena, CA 91109-7321 Attention: Matt Jackson, Account Manager Tel: (800) 622-1147 Fax: (412) 859-2860 Definity Design Group settlement/ $290,000 dba Definity Media consulting 11768 Moorpark Street, agreement Unit J Studio City, CA 91604 Attention: Evan Warshawsky Tel: (818) 487-9928 Fax: (818) 906-8494 Court-TV trade debt $203,150 Food Network trade debt $180,370 Customer Focus Services trade debt $135,001 Specialized Warehousing, trade debt $132,868 L.L.C. Mantec Consultantsd trade debt $131,631 Private, Ltd. Mahoney, Cohen & Co., trade debt $128,783 C.P.A. YES Network, L.L.C. trade debt $109,055 Chanin Capital, L.L.C. trade debt $107,563 Q.V.C., Inc. trade debt $104,226 Worldwide Logistics trade debt $95,833 (U.S.A.), Ltd. Select Personnel Services trade debt $88,119 B. Ronco Marketing Corporation's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Popeil Inventions (and acquisition $11,777,534 other entities owned by indebtedness Ron Popeil) 1672 Waynecrest Drive Beverly Hills, CA 90210 Attention: Ron Popeil Tel: (310) 273-4411 Fax: (310) 273-4483 Guang Dong Xinbao trade debt $1,065,894 Holdings, Co. Zhenghe South Road, Leilu Town, Foshan City, Guangdong Province, China Attention: Lydia Zhu Tel: (86) 757-2533-3888 Fax: (86) 757-2533-6531 Threesixty Sourcing trade debt $916,570 Hong Kong, Ltd. 3/F, 100 Li Wan Road GuangZhou, China Attention: Emily Liu Tel: (86) 852-3408-2200 Fax: (86) 852-2243-5091 Federal Express Corp. trade debt $355,601 P.O. Box 7221 Pasadena, CA 91109-7321 Attention: Matt Jackson, Account Manager Tel: (800) 622-1147 Fax: (412) 859-2860 SAMSONITE CORP: April 30 Balance Sheet Upside-Down by $224.7 Mil. ----------------------------------------------------------------- Samsonite Corporation's balance sheet as of April 30, 2007, showed total assets of $643.8 million, total liabilities of $843 million and minority interest of $25.5 million, resulting in a total stockholders' deficit of $224.7 million. Liquidity and Capital Resources At April 30, 2007, the company had consolidated cash of $51.2 million and net working capital of $172.8 million. The company believes its cash and working capital levels are adequate to meet the operating requirements of the company for at least the next 12 months. The company's primary sources of liquidity are its cash flows from operations and cash availability under its senior credit facility. During the three months ended April 30, 2007, the company's net cash used in operations was $1.7 million compared to cash provided by operations of $14.9 million during the three months ended April 30, 2006. The company's senior credit facility consists of a term loan arrangement with $450 million borrowed as of April 30, 2007 and an $80 million revolving credit facility. The revolving credit facility consists of $50 million, which may be borrowed by the company and Euro 22.7 million, which may be borrowed by the company's European subsidiary. As of April 30, 2007, there was $25.5 million available under the company's revolving credit facility and the full amount of the European portion of the revolving credit facility was available. First Quarter Results Revenue were $264.7 million, operating income of $19.4 million and net loss to common stockholders of $3 million for the quarter ended April 30, 2007. These results compare to revenue of $241 million, operating income of $19.1 million and net income to common stockholders of $1 million for the first quarter of the prior year. Net income for the prior year includes a benefit of $1.4 million, relating to the cumulative effect of an accounting change. Operating income reflects deductions for restructuring charges of $1.3 million in fiscal 2008 and an asset impairment charge of $1.6 million in fiscal 2007. In fiscal year 2008, these charges relate to the planned closure of the company's Denver, Colorado facilities and related consolidation of its corporate functions in its Mansfield, Massachusetts office and the planned relocation of distribution functions from the company's Denver facilities to the southeast region of the U.S. The prior year asset impairment relates to the closure of the company's manufacturing plant in Samorin, Slovakia. A full-text copy of the company's first quarter report is available for free at http://ResearchArchives.com/t/s?20f5 ERP Software System During the first quarter of fiscal 2008, the company implemented its new ERP software system in the United States and, as a result, experienced a slowdown in customer order processing and product shipments in the region. The company estimates that its reported North American sales for the quarter ended April 30, 2007, were adversely affected by about $9.5 million due to customer order cancellations and retail inventory shortages in its company-operated retail stores due to the slowdown in product shipments. Subsequent to quarter-end the company's operations in the United States returned to near normal levels of customer order processing and product shipments. Chief executive officer, Marcello Bottoli, stated: "The company had a solid first quarter, delivering robust sales growth, significant gross margin improvement and good progress in working capital efficiency. Net first quarter sales rose 9.8% year-on- year, while quarterly gross margins increased 200 basis points to 53.1%, compared to prior year. Sales growth of $23.7 million to $264.7 million was achieved despite an 11% sales decline in North America, where implementation of our new ERP software in the United States slowed shipments for a portion of the quarter. Subsequent to quarter end, the United States resumed more normal shipping patterns. Overall, I am pleased with this performance, which demonstrates continued progress in the implementation of our strategic plan." Richard Wiley, chief financial officer, commented: "The company's strategy of streamlining operations while delivering top line growth contributed to a 5.4% year-on-year increase in first quarter Adjusted EBITDA, to $30.8 million. The 5% increase in first quarter sales on a constant currency basis compared to the prior year was driven primarily by economic growth in Asia, price increases in Europe and contributions from joint ventures in Asia and the U.S. that were completed in the second quarter of fiscal 2007. Execution of our strategic plan to improve margins resulted in a 200 basis point increase in gross profit margins to 53.1% in the first quarter from 51.1% in the prior year. This was driven by a combination of price increases, improved sales mix and lower fixed manufacturing and direct product costs. In the last twelve months, average net working capital efficiency improved 70 basis points over the prior year to 15.5% of sales as of April 30, 2007. The company's debt net of cash position as of April 30, 2007 was $430.5 million." About Samsonite Samsonite Corporation (OTC Bulletin Board: SAMC.OB) -- http://www.samsonite.com/-- manufactures, markets and distributes luggage and travel-related products. The company's owned and licensed brands, including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and Timberland, are sold globally through external retailers and 284 company-owned stores. Executive offices are located in London. The company has global locations in Aruba, Australia, Costa Rica, Indonesia, India, Japan, and the United States among others. Executive offices are located in London, England. SANMINA-SCI: Posts $26.1 Million Net Loss in Qtr Ended March 31 --------------------------------------------------------------- Sanmina-SCI Corporation reported a net loss of $26.1 million for the second quarter ended March 31, 2007, compared with a net loss of $76.1 million for the same period ended April 1, 2006. Sanmina-SCI reported revenue of $2.61 billion, modestly down from $2.67 billion reported in the second quarter of fiscal 2006 ended April 1, 2006. Operating income was $14.7 million, compared to $44.4 million in in the same period a year ago. Gross profit was $137.7 million, compared to $164.6 million in the 2006 quarter. On a non-GAAP basis, which exclude charges or gains relating to stock-based compensation expenses, restructuring costs, integration costs, impairment charges for goodwill and intangible assets, amortization expense and other infrequent or unusual items, net income for the second fiscal quarter of 2007 was $793 thousand, compared to net income of $30.5 million in the 2006 quarter. Operating income was $40.2 million or 1.5% of revenue, compared to $66.3 million, or 2.5% of revenue in the same period a year ago. Gross profit was $139.2 million or 5.3% of revenue, compared to $164.8 million, or 6.2% in the 2006 quarter. Sanmina-SCI Corporation uses these non-GAAP measures to gauge the company's core financial and operating performance. This is accomplished by eliminating certain financial items that are of a non-recurring, unusual or infrequent nature or are not related to the company's regular, ongoing business. Cash flow provided by operations was $124.0 million for the quarter ended March 31, 2007. At March 31, 2007, the company reported $664.1 million in cash and cash equivalents. "As previously announced, our second quarter revenues were below expectations. While the second quarter has historically been a seasonally weak quarter for us, profitability was further impacted by an unfavorable product-mix with a higher than anticipated decline in demand from the communications and high-end computing markets. Demand in the third quarter continues to be weaker than traditional levels, but we do see signs of improvement that should contribute positively in the second half of the calendar year," stated Jure Sola, chairman and chief executive officer. About Sanmina-SCI Sanmina-SCI Corporation (NASDAQ: SANM) -- http://sanmina-sci.com/ -- is an electronics contract manufacturer serving the fastest- growing segments of the global electronics manufacturing services (EMS) market. Sanmina-SCI provides end-to-end manufacturing solutions to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. * * * As reported in the Troubled Company Reporter on June 8, 2007, Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to Sanmina-SCI Corp.'s $600 million in floating-rate notes, $300 million of which mature in 2010 and $300 million of which mature in 2014. SIERRA PACIFIC: Moody's May Lift Ba2 Credit Rating After Review --------------------------------------------------------------- Moody's Investors Service placed the Corporate Family Rating of Sierra Pacific Resources (CFR at Ba2) under review for possible upgrade. At the same time, Moody's also placed under review for possible upgrade all of the instrument ratings of SRP (B1 senior unsecured) and all the instrument ratings of SRP's utility subsidiaries, which include Nevada Power Company (NPC; Ba1 senior secured) and Sierra Pacific Power Company (SPPC; Ba1 senior secured). LGD assessments are also subject to change. SRP's Speculative Grade Liquidity Assessment rating is affirmed at SGL-3 and is thus not part of the review for possible upgrade. The rating action takes into account yet another supportive ruling by the Public Utility Commission of Nevada in NPC's recently decided general rate case, passage of favorable legislation in Nevada which includes provisions for use of a hybrid test year in electric general rate case proceedings going forward, regulatory support for recovery of past costs related to terminated supply contracts and other supply costs disallowed at NPC in a 2002 decision by the PUCN, and a supportive draft order in the pending long-term financing authority case recently filed by NPC and SPPC. The draft order, if approved by the PUCN in its original form, would grant much of the long-term financing authority recently sought by NPC and SPPC and would eliminate the PUCN imposed dividend limitations that have applied to NPC and SPPC for the past several years. The review will consider the extent to which SRP and its subsidiaries can generate more predictable and sustainable profitability over the near to intermediate term, which hinges in large part on the degree of future support the utilities can obtain from the PUCN for their impending large increase in capital expenditures. The capital program currently includes the potential to spend upwards of $7.8 billion over the next five years on new generation and transmission capacity additions, while also maintaining existing infrastructure. In addition to our assessment of future regulatory support, Moody's will also assess the likely financing strategy the utilities will undertake, including the ability and willingness of SRP to issue additional common equity to help balance new debt that will be needed to fund the expected capital program over the next several years. In conjunction with this part of our analysis, Moody's will also consider the effects that this financing strategy may have on prospective credit metrics, along with the extent to which secured debt in the future might further increase as a percentage of the consolidated debt total. Ratings placed under review for possible upgrade include: * Sierra Pacific Resources -- Corporate Family Rating: Ba2; -- Probability of Default Rating: Ba3; -- Issuer Rating: B1; -- Senior unsecured, B1; -- Multiple seniority shelf (senior unsecured), (P)B1; -- Multiple seniority shelf (subordinate), (P)B2; * Sierra Pacific Resources Capital Trust I -- Preferred securities shelf, (P)B2. * Sierra Pacific Resources Capital Trust II -- Preferred securities shelf, (P)B2. * Nevada Power Company -- Issuer Rating: B1; -- Senior secured revolver, Ba1; -- Senior secured, Ba1; -- Multiple seniority shelf (senior secured), (P)Ba1; -- Multiple seniority shelf (preferred stock), (P)B1. * Sierra Pacific Power Company -- Issuer Rating: B1; -- Senior secured, Ba1; -- Senior secured revolver, Ba1; -- Multiple seniority shelf (senior secured), (P)Ba1; -- Multiple seniority shelf (preferred stock), (P)B1. Sierra Pacific Resources is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are electric and electric and gas utilities, respectively. Sierra Pacific Resources' headquarters are in Las Vegas, Nevada. SOLSTICE ABS: S&P Places B Rating on Class C Notes on Neg. Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on the class B and C notes issued by Solstice ABS CBO II Ltd., a CDO of ABS and other structured securities managed by Rabobank International, on CreditWatch with negative implications. At the same time, S&P affirmed its 'AAA' ratings on the class A-1 and A-2 notes. The CreditWatch placements reflect factors that have negatively affected the credit enhancement available to support the notes since the deal was last downgraded in December 2006, primarily the negative credit migration in the underlying collateral. The deal has also been failing the class B overcollateralization test, which has caused the class C notes to defer interest since the May 2005 payment period. Standard & Poor's will review the results of current cash flow runs generated for Solstice ABS CBO II Ltd. to determine the level of future defaults the rated tranches can withstand under various stressed default timing and interest rate scenarios while still paying all of the interest and principal due on the notes. The results of these cash flow runs will be compared with the projected default performance of the performing assets in the collateral pool to determine whether the ratings currently assigned to the tranches remain consistent with the amount of credit enhancement available. Ratings Placed on Creditwatch Negative Solstice ABS CBO II Ltd. Rating ------ Class To From Current balance ----- -- ---- --------------- B A+/Watch Neg A+ $66,500,000 C B/Watch Neg B $23,850,000 Ratings Affirmed Solstice ABS CBO II Ltd. Class Rating Current balance ----- ------ --------------- A-1 AAA $123,390,000 A-2 AAA $49,980,000 SOLUTIA INC: Court Sets July 10 Disclosure Statement Hearing ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on July 10, 2007, at 2:30 p.m. to consider approval of the disclosure statement describing Solutia Inc. and its debtor-affiliates' Amended Joint Plan of Reorganization Objections are due on June 28, 2007, at 5:00 p.m. ET. Under their proposed Amended Plan and procedures for soliciting and tabulating votes on that Plan, the Debtors asked the Court to establish the second business day after the entry an order approving the Disclosure Statement as the record date for purposes of determining which creditors are entitled to vote on the Plan. The Debtors propose that with respect to any transferred claim, the transferee will be entitled to receive a solicitation package and, if the claim holder is entitled to vote with respect to the Plan, cast a ballot on account of the claim only if (i) all actions necessary to effectuate the transfer of the claim have been completed by the Record Date, or (ii) the transferee files by the Record Date, the documentation required by Bankruptcy Rule 3001(e) to evidence the transfer, and a sworn statement of the transferor supporting the validity of the transfer. In the event a claim, other than a Noteholder Claim, is transferred after the Record Date, the transferee will be bound by any vote or election to participate in the rights offering, as the case may be, made by the claim holder as of the Record Date. In the event a Noteholder Claim is transferred after the Record Date, the transferee of the Noteholder Claim will be bound by any vote made by the claim holder as of the Record Date. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Debtors' exclusive period to file a plan expires on July 30, 2007. SPECIALTY RESTAURANT: Hires MGLAW PLLC as Local Counsel ------------------------------------------------------- Specialty Restaurant Group LLC obtained authority from the U.S. Bankruptcy Court for the Middle District of Tennessee to employ MGLAW PLLC as its local counsel, nunc pro tunc to April 11, 2007. MGLAW is expected, among others, to: a. render legal advice with respect to the rights, powers and duties of the Debtor in the management of its property; b. investigate and, if necessary, institute legal action on behalf of the Debtor to collect and recover assets of the estates of the Debtor; c. prepare all necessary pleadings, orders and reports with respect to this proceeding and to render all other legal services as may be necessary or proper herein; d. negotiate any issue regarding the Plan of Reorganization and Disclosure Statement and promote the financial rehabilitation of the Debtor; e. represent the Debtor in any forum as may be necessary to protect the interests of the Debtor; and f. perform all other legal services that may be necessary and appropriate in assisting Debtor's lead counsel with the general administration of this estate. MGLAW's current standard hourly rates are: Designation Hourly Rate ----------- ----------- Members $265 - $350 Associates $155 - $235 Paralegals $125 MGLAW's standard hourly rates are subject to adjustment as of January 1 of each year. To the best of the Debtor's knowledge, MGLAW does not hold or represent any interest adverse to the Debtor's estate and is a "disinterested person." The firm can be reached at: Robert J. Gonzales, Esq. MGLAW PLLC 2525 West End Avenue, Suite 1475 Nashville, TN 37203 Tel: (615) 846-8000 Fax: (615) 846-9000 http://www.mglaw.net/ Based in Maryville, Tennessee, Specialty Restaurant Group LLC -- http://www.srg.us/-- owns and operates three restaurant concepts with over 35 restaurants primarily located in the Eastern US. The American Caf,, Silver Spoon Caf,, and L&N Seafood Grill. The company filed for Chapter 11 protection on May 15, 2007 (Bankr. M.D. TN, Case No. 07-03356). When the Debtors filed for protection from their creditors, they listed total assets of $7,231,149 and total debts of $21,285,200. The company previously filed for Chapter 11 protection on Feb. 13, 2007 (Bankr. N.D. TX, Case No. 07-30779). The Debtor was then represented by Fulrbight & Jaworski, LLP. On May 2, 2007, the Texas Court entered an order changing the venue for the Debtor's case to the U.S. Bankruptcy Court for the Middle District of Tennessee. ST. MARY: Closes $29.5 Million South Texas Acquisition ------------------------------------------------------ St. Mary Land & Exploration Company has closed a $29.5 million acquisition in South Texas on June 1, 2007. The acquired assets target the Olmos shallow gas formation and are located in the Catarina Field in Webb and Dimmit Counties, Texas. Highlights of the transaction include: * Purchase price of $29.5 million to be funded with cash on hand and bank borrowings under the company's existing credit facility. * 100 percent operated, with an average working interest of 30.0 percent and net revenue interest of 22.5 percent. * Estimated net unrisked proved reserves of 14.0 BCFE (99 percent natural gas), 65 percent of which are proved developed. * Current net production of 2.9 MMcfe/d (98 percent natural gas). The acquisition is expected to contribute approximately 600 MMcfe of production in 2007. At this time, the company is not changing the previously issued production guidance for the second quarter or full year of 2007. Regional Restructuring The company has also realigned its Greater Gulf Coast region and the appointment of Lehman E. Newton III as Vice President - Regional Manager of the Permian region. St. Mary will split the Greater Gulf Coast region, which had previously overseen the company's Gulf Coast and Permian operations, into two separately managed regions. The company's Permian Basin assets will be managed out of the Midland, Texas, office which was opened in February of this year following the acquisition of the Sweetie Peck assets last December. The remaining onshore Texas, Gulf Coast, and Gulf of Mexico assets will be managed by the Houston office. Mr. Newton has been appointed Vice President - Regional Manager of the Permian region. Jerry Schuyler, Senior Vice President - Regional Manager of the Greater Gulf Coast region, left the company earlier this month to pursue other professional interests. The company has begun the process of searching for a new regional manager for the Gulf Coast region. Mr. Newton most recently served as General Manager of the Company's Midland office, which he helped open in February 2007. He began his career in 1979 with ARCO, and held positions of increasing responsibility in engineering, operations, and business development through 2000. Mr. Newton then founded and subsequently sold a private exploration and development company focused on the Permian Basin. He also worked for PURE Resources, a subsidiary of Unocal, as well as its successor owner Chevron. He has a degree in chemical engineering from Texas Tech University and is a registered professional engineer. Tony Best, President and CEO, commented, "With operated activity ramping up in the Permian Basin and the addition of these South Texas assets in the Gulf Coast region, we felt this was the right time to split the region into two separate operating areas. Newt brings an incredible amount of Permian Basin knowledge and experience to St. Mary and we are excited to have him manage the assets in this new region. With respect to the announced acquisition, onshore South Texas is an area that we have been looking to enter for a number of years. We are entering the play at an attractive cost and believe that this acquisition gives us a foundation for growth in the region." About St. Mary Land & Exploration Based in Denver, Colorado, St. Mary Land & Exploration Company (NYSE: SM) -- http://www.stmaryland.com/-- is engaged in the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in five core areas in the United States. The company invests in oil and gas producing assets that provide a superior return on equity while preserving underlying capital, resulting in a return on equity to stockholders that reflects capital appreciation as well as the payment of cash dividends. * * * As reported in the Troubled Company Reporter on April 2, 2007, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to oil and gas exploration and production company St. Mary Land & Exploration Co. The outlook is stable. STATS CHIPPAC: Moody's Lifts Rating to Ba1 on Good Performance -------------------------------------------------------------- Moody's Investors Service upgraded STATS ChipPAC's corporate family rating and foreign currency debt ratings to Ba1 from Ba2. This concludes the review for possible upgrade which began on March 1, 2007. The outlook for all the ratings is stable. "The rating upgrade reflects STATS ChipPAC's improved operating and financial profiles with continued free cash flow generation on the back of favorable industry fundamentals," says Wonnie Chu, lead analyst for STAT ChipPAC, adding "the company maintains its strong market position with a more diversified customer base." At the same time, the support level for STAT ChipPAC from its parent, Singapore Technologies Semiconductors Pte Ltd which is in turn 100%-owned subsidiary of Temasek, has also been changed to Medium from Low under Moody's joint default analysis for government related issuer. This follows the completion of the voluntary conditional cash offered by STS to buy the remaining shares and convertible subordinated notes due in 2008 of STATS ChipPAC. STS now owns 83.1% of STATS ChipPAC and US$134.5m of its convertible subordinated notes. The Ba1 rating take into account: (1) STATS ChipPAC's stand-alone credit fundamental, and (2) the likelihood of Temasek (rated Aaa/Stable), through STS, providing the company with credit support in a stress situation. Moody's ranks the company's underlying credit fundamental as "11- 13" equivalent to Ba1-Ba3 on our global rating scale. This assessment reflects STATS ChipPAC's strong market position as the fourth largest player in the OSAT industry, its positive free cash flow generative status and sound debt maturity profile. At the same time, it also takes into account STATS ChipPAC's continued exposure to average sales price erosion and price fluctuations for raw materials, which are a major cost in the assembly process. Moody's overlays the company's stand-alone credit fundamental on a joint default analysis approach. That involves estimating the likelihood that in the event of pending failure by the company, Temasek - through STS - would step in and prevent a default. The medium support reflects STATS ChipPAC's importance within Temasek, which through STS, owns 83.1% of STATS ChipPAC's issued shares. The ratings could experience upward pressure if: (1) a track record emerges of maintaining profitability and achieving projected results over the semiconductor cycle; (2) an ability to generate free cash flow for permanent debt reduction emerges, such that total debt/total cap < 25% and (EBITDA-Capex)/Int > 4.5-5.0x on a sustained basis; and (3) cash holdings are built up and strong balance sheet liquidity is maintained to provide a buffer against industry cyclicality. In addition, evidence of financial support from Temasek would be positive for the rating as it would improve the support level. On the other hand, downward ratings pressure could evolve if: (1) asset utilization falls, reducing profitability and cash flow-generating abilities; (2) an industry downturn emerges, and which materially impairs the company's debt-servicing ability; or (3) its balance sheet gears up due to a large capital expenditure or investment program, such that total debt/total cap > 40% and (EBITDA-Capex)/Int < 1.5-2.0x over the cycle. Furthermore, a significant reduction in STS's controlling stake which weakens the support level, a scenario is considered unlikely in the near term, would be negative for the rating. STATS ChipPAC Ltd is a back-end semiconductor assembly and test company. It provides full-turnkey solutions to semiconductor businesses, including foundries, integrated device manufacturers and fabless companies in the U.S., Europe and Asia. It ranked fourth in the global outsourcing semiconductor assembly and test industry as of end-2006. In fiscal year 2006, packaging revenue accounted for 74% of sales, and test and other revenues the balance. The communications segment accounted for 57% of sales. The company's offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. STRATUS TECH: Moody's Withdraws Ratings on Company's Request ------------------------------------------------------------ At the company's request and considering the absence of publicly traded notes, Moody's is withdrawing its published, monitored ratings on Stratus Technologies International SARL's bank credit facilities and corporate family rating. Rating Withdrawn: -- Corporate family rating: B2; -- Probability of default rating: B2; -- $30 million senior secured revolver due 2011: B1, LGD3, 33%; -- $200 million senior secured first lien term loan due 2011: B1, LGD3, 33%; -- $100 million senior secured second lien TL due 2012: Caa1, LGD5, 85%. Headquartered in Maynard, Massachusetts, Stratus Technologies is a provider of fault-tolerant server products and related services for mission-critical applications. SUNRISE SENIOR: Millennium Partners Wants Management Replaced ------------------------------------------------------------- Millennium Partners, L.P. has appealed to the Board of Directors of Sunrise Senior Living Inc. to act in the best interest of all Sunrise shareholders, by charging them to take prompt action either to sell the company or to replace management. Millennium Partners, a New York-based multistrategy hedge fund and a shareholder owning an interest of 1.3 million shares in the company, has not yet received any word from the company's board of directors. Eduardo Abush, Portfolio Manager, and Simon Lorne, Vice Chairman and Chief Legal Officer of Millennium Partners, have expressed their concerns through a letter released at the end of May 2007. "Like many-perhaps most-of your shareholders, we are deeply disturbed and distressed at the current state of affairs. We believe that the assets of Sunrise have real value, as discussed in greater detail below, yet it is apparent that the market does not recognize the value of those assets, leading to a considerable disconnect between the company's public market value and its intrinsic value. Furthermore, it is clear to us that the public activities and statements of management have served to exacerbate, rather than ameliorate, the market's misunderstanding of the Company's intrinsic value, and we worry that maintaining the status quo might lead to further value destruction. We believe that this company, with this management, does not belong as a participant in the public securities markets. Accordingly, we urge the Board to take appropriate steps to: (1) sell or merge the company either in a public market transaction or in a "going private" transaction; (2) restructure the company in a transformative way so that its different elements-primarily, real estate development and ownership on the one hand and healthcare facility operation on the other-can be more readily appreciated and valued by the market; or, (3) if neither of those seems feasible, then, at the very least, recruit new management that is more professionally competent at successfully managing a public company." "To facilitate any such course of action, we urge the Board to eliminate all of the defensive measures that the company has in place. While such measures may have been useful in the past, at this point they serve only as an impediment to a value-creating transaction for the company's various stakeholders." Mr. Abush and Mr. Lorne continue, "There are two fundamental maxims for public company managements in dealing with investors and the securities markets. The first is to avoid surprises. The second is to 'under-promise and over-deliver.' Both have been violated time and again by this company's management. "We do not necessarily blame management for poor stewardship of the company's assets. While we don't know all the relevant facts, it seems entirely plausible that management has been continuously surprised and disappointed by these developments, just as we and the other shareholders have been. We do blame management for failing to have fostered the right corporate culture and team designed to avoid this situation. The securities markets demand, above all else, respect. This management has shown them none, and as a result the company faces the possibility of having its shares de-listed from the NYSE within the next few months. "Additionally, there are serious questions regarding the state of the company's system of internal controls. To date, based on the company's public disclosures, we do not have reason to believe that failures in the internal controls system have led to actual losses or actual diminution in the value of the company's assets (beyond, of course, the expense-not inconsiderable-of investigation and litigation resulting from those failures). It is clear to us, however, that the company has not taken seriously its internal controls obligations (either under Sarbanes-Oxley 404 or under normal good management practices) and as a result is unable to satisfy an increasingly skeptical market that the internal controls failures have not resulted in actual losses. In the present environment, we are surprised that the Board has accepted these failures as readily as appears to be the case. We do not necessarily believe that the requirements of Sarbanes-Oxley 404 are cost-benefit warranted and, in this respect, are in accord with some of the suggestions of Mr. Donohue's organization. We do believe (and believe that Mr. Donohue likely agrees) that sound internal controls are an essential element of prudent fiscal management; they appear to have been substantially ignored by the company. "Similarly, we do not particularly find fault with the Board of Directors, for it seems quite possible that all of these developments were completely surprising to the Board. Every Board of Directors, however, needs to know when to say 'enough is enough.' That time has come." The Millennium officers point out, "As you are aware, Millennium Partners is a hedge fund, not a private equity fund. We are not interested in acquiring the Company or its assets on our own. (Indeed, we will probably continue to buy and sell shares of the company's stock on an opportunistic basis, even while we expect to maintain a sizable investment in the company awaiting the company's response to the considerations discussed in this letter.) We have discussed, and will continue to discuss, our views of the company with others. We have not, and currently do not expect to, enter into any verbal or written agreement to act in concert with others (although, of course, we reserve the right to do so, and we recognize our implicit obligations vis-.-vis SEC filings in the event that we do). "We are, however, very much interested in maximizing the value of our investment in the Company, and believe our interests are aligned with those of every shareholder in this regard. We are fully prepared to work with the Company in exploring these matters if the Company desires. "We do not believe that the Company can legitimately claim a right to continue business as usual in these circumstances when time and again the shortcomings of the management in place are so evident." About Sunrise Senior Based in McLean, Virginia, Sunrise Senior Living, Inc. (NYSE: SRZ) -- http://www.sunriseseniorliving.com/-- operates 415 communities in the United States, Canada, Germany and the United Kingdom offering a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing and rehabilitative care. * * * As reported in the Troubled Company Reporter on Feb. 1, 2007, Charles H. Johnson & Associates, P.A. commenced a class action in the U.S. District Court for the District of Columbia on behalf of the purchasers of Sunrise Senior Living, Inc.'s publicly traded securities during the Class Period of Aug. 4, 2005 through June 15, 2006. The Complaint charges Sunrise Senior and certain of its officers and directors with violations of the Securities Exchange Act of 1934, because, during the Class Period, defendants issued materially false and misleading statements regarding the company's business, its stock option plans, its compensation practices and its financial results. As a result of these false statements, Sunrise's common stock traded at artificially inflated prices during the Class Period, reaching a high of $39.68 per share on March 29, 2006. The individual defendants took advantage of Sunrise's falsified financial results, the artificial inflation of Sunrise's stock and its stock option plans by selling shares of their Sunrise stock for proceeds of over $34 million. The Complaint also alleges that defendants manipulated the company's stock option plans so as to enrich themselves by "backdating" the stock options they were granted. On May 9, 2006, Sunrise disclosed a delay in reporting its first quarter 2006 results to allow a review of its financial statements, and on July 31, 2006, Sunrise revealed it would be forced to restate its financial statements going back several years -- at least to 1999 -- and that its prior financial statements could no longer be relied upon. Sunrise also admitted it could not file current period financial statements for the first, second and third quarters of 2006 and that when it restated its financial results, at least $100 million of previously reported profits would be eliminated. As these revelations unfolded, Sunrise's stock fell from $39.62 on May 8, 2006 to as low as $24.40 on July 31, 2006. TWEETER HOME: Receives Nasdaq Delisting Notice ---------------------------------------------- Tweeter Home Entertainment Group, Inc., disclosed that on June 12, 2007, it received a letter from the Listing Qualifications Department of The NASDAQ Stock Market indicating that, as a result of the company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the NASDAQ staff has determined, using its discretionary authority under NASDAQ Marketplace Rules 4300, 4450(f) and IM-4300, that the company's securities will be delisted from the NASDAQ Stock Market and that trading in the company's common stock will be suspended, unless the Company files an appeal of the determination. The company filed for bankruptcy on June 11, 2007. A copy of the company's case summary was published in the Troubled Company Reporter on June 12. The company does not intend to appeal the NASDAQ staff's determination. Accordingly, trading of the company's common stock will be suspended at the opening of business on June 21, 2007 and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's securities from listing and registration on The NASDAQ Stock Market. Based in Canton, Mass., Tweeter Home Entertainment Group Inc. -- http://www.tweeter.com/-- retails mid-to high-end audio and video consumer electronics products. Tweeter and seven of its affiliates filed for chapter 11 Protection on June 11, 2007 (Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M. Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in their restructuring efforts. As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total debts of $190,417,285. VINCENT MITCHELL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Vincent Mitchell 2407 Weatherford Pearland, TX 77584 Bankruptcy Case No.: 07-80302 Chapter 11 Petition Date: June 6, 2007 Court: Southern District of Texas (Galveston) Judge: Letitia Z. Clark Debtor's Counsel: Thomas Frederick Jones, III, Esq. Bailey & Galyen Attorneys 18333 Egret Bay Boulevard, Suite 120 Houston, TX 77058 Tel: (281) 335-7744 Fax: (281) 335-4774 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. WIKI WIKI: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Wiki Wiki Walls LLC 84-567 Upena Street Waianae, HI 96792 Bankruptcy Case No.: 07-00615 Chapter 11 Petition Date: June 14, 2007 Court: District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Donald L. Spafford, Jr., Esq. Pauahi Tower, Suite 470 1001 Bishop Street Honolulu, HI 96813 Tel: (808) 532-6300 Fax: (808) 532-6309 Total Assets: $416,930 Total Debts: $1,172,631 Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ 3D Development LLC Promissory Note - $275,000 87-064 Farrington Highway Breach of Agreement Waianae, HI 96792 David Hinterreiter Promissory Note - $125,000 87-064 Farringotn Highway Breach of Agreement Waianae, HI 96792 Michael Wartena Loan $125,000 5986 West A Street West Linn, OR 97068 Lani Gilbreath Loan $100,000 Jeremy & Debbie Parsons Loan $100,000 3 M Investments Inc. Loan $75,000 Innovative Housing Lease Rent $56,000 Solutions, Inc. Verti-Crete, LLC Equipment Purchase $55,794 State of Hawaii General Excise Taxes $50,000 Bill Harvey Loan $45,000 Western Machinery Equipment Rentals $23,000 South Pacific Steel Steel Purchases $19,000 Internal Revenue Service Payroll Taxes $16,385 Jeremy Parsons Wages $14,586 Shane Parsons Wages $12,585 Aaraon Wartena Commissions $12,000 Grant Wartena Loans $10,000 Ginger Kahalepuna Restitution $9,500 State of Hawaii Payroll Taxes $8,385 Matson Navigation Company Storage Charges $7,500 WILLOW RE: S&P Rates $250 Mil. Series 2007-1 Class B Notes at BB+ ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' senior secured debt rating to Willow Re Ltd.'s $250 million Class B Series 2007-1 principal-at-risk variable-rate notes. This is the first issuance under Willow Re's newly established US$2 billion principal-at-risk variable-rate note program. The proceeds from the notes issuance will provide Allstate Insurance Co. (AA/Negative/A-1+) and its affiliates with a source of index- based collateralized reinsurance for hurricanes in the covered area--the states of New York, New Jersey, and Connecticut--on a per-occurrence basis over a three-year period. This is the first hurricane-linked catastrophe bond for which Allstate was the sponsor. The program allows for six different classes of notes to be issued based on peril, region, and payout trigger. "The rating on the notes is based on the modeled probability of attachment and the analysis of the deal structure," said Standard & Poor's credit analyst Gary Martucci. AIR Worldwide Corp.'s Atlantic Tropical Cyclone Model Version 9.0 was used to determine the probability of attachment of the notes. The initial probability of attachment based on the near-term analysis (sensitivity case) for the notes is 105 basis points. The initial trigger amount is $1.6 billion, and the initial exhaustion amount is $2.345 billion. AIR will remodel the transaction each year to keep the probability of attachment at a level equal to or less than the initial probability of attachment. The trigger and exhaustion amounts will change accordingly to reflect this annual reset. If a hurricane passes through the covered area and the insured industry personal property losses as set forth in the most recent catastrophe bulletin released by PCS results in an event index value in excess of $1.60 billion, it is anticipated that there will be a reduction in the outstanding principal amount of the notes. If the event index value equals or exceeds $2.345 billion, it is expected that the entire principal amount will be lost. WOODWIND & BRASSWIND: Trustee Hires Baker as Special Counsel ------------------------------------------------------------ Joseph D. Bradley, the chapter 7 trustee appointed in The Woodwind & The Brasswind's bankruptcy case, obtained authority from the U.S. Bankruptcy Court for the Northern District of Indiana to employ Baker & Daniels LLP as special counsel. The firm will represent Mr. Bradley with regards to: a) claims asserted as secured administrative or priority claims against the chapter 7 estate; b) investigation and prosecution of demands, claims and causes of action that the Trustee may hold; and c) the bankruptcy estate's effort to obtain possession of assets and to dispose of and reduce to cash various assets of the estate. The Trustee will pay Baker & Daniels' professionals these hourly rates: James M. Carr, Esq. Partner $450 Carl A. Greci, Esq. Partner $295 Mark A. Werling, Esq. Associate $250 Sarah B. Laughlin Paralegal $165 Mr. Carr discloses that his firm represented the Official Committee of Unsecured Creditors prior to conversion of the Debtor's chapter 11 case to chapter 7. Mr. Carr assures the Court that his firm does not hold any interest adverse to the bankruptcy estate in its representation of the chapter 7 trustee. Headquartered in South Bend, Indiana, The Woodwind & the Brasswind -- http://www.wwbw.com/-- sells musical instruments and accessories. The company filed for chapter 11 protection on Nov. 24, 2006 (Bankr. N.D. Ind. Case No. 06-31800). On May 10, 2007, the Court converted the Debtor's case to a Chapter 7 proceeding. Lawyers at Barnes & Thornburg LLP and Adelman & Gettleman, Ltd. represented the Debtor in its restructuring efforts. Joseph D. Bradley, Esq., the appointed chapter 7 trustee, represents himself. He is co-represented by Aladean M. DeRose, Esq. When the Debtor filed for protection from its creditors, they estimated assets and debts between $1 million and $100 million. XERIUM TECH: Eduardo Fracasso Promoted as Brazilian Unit President ------------------------------------------------------------------ Xerium Technologies Inc. disclosed that Eduardo Fracasso has been promoted to the position of president - Xerium Brazil, reporting directly to Thomas Gutierrez, chief executive officer of Xerium Technologies. Mr. Fracasso has been with the company in Brazil for nearly 18 years, most recently as operational director. Miguel Qui�onez, the company's president - Xerium South America, who notified the company of his plans to retire effective Dec. 31, 2007, will retain direct responsibility for the company's operations in Argentina and continue to mentor Mr. Fracasso. "I am pleased to welcome Eduardo to the executive team," Thomas Gutierrez, chief executive officer of Xerium Technologies, said. "I believe that his many years of operational experience with the company in Brazil will serve him and the company well as he takes on the responsibilities of his new position." Xerium Technologies Inc. (NYSE: XRM) -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 33 manufacturing facilities in 14 countries around the world, Xerium Technologies has approximately 3,800 employees. * * * As reported in the Troubled Company Reporter on Feb. 13, 2007, Moody's Investors Service downgraded Xerium Technologies': Corporate Family Rating, to B2 from B1; Senior Secured Term Loan, to B2 from B1; Senior Secured Revolving Credit Facility, to B2 from B1; and Probability of Default Rating, to B2 from B1. YOUNG MIN CHOE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Young Min Choe 107 County Line Road Belton, MO 64012 Tel: (816) 331-6300 Bankruptcy Case No.: 07-41933 Chapter 11 Petition Date: June 10, 2007 Court: Western District of Missouri (Kansas City) Judge: Dennis R. Dow Debtor's Counsel: Ray E. Sousley, Esq. 800 Westport Road Kansas City, MO 64111 Tel: (816) 931-5000 Fax: (816) 753-5051 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. ZIFF DAVIS: S&P Withdraws Rating at Company's Request ----------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Ziff Davis Media Inc., at the company's request. New York City-based Ziff Davis, which is analyzed on a consolidated basis with its parent company, Ziff Davis Holdings Inc., publishes online and print content on the technology and video game industry. Total rated debt outstanding as of March 31, 2007, was roughly $390 million. * BOND PRICING: For the week of June 11 - June 15, 2007 ------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- ABC Rail Product 10.500% 01/15/04 0 Alaris Medical 7.250% 07/01/11 11 Alladin Gaming 13.500% 03/01/10 0 Allegiance Tel 11.750% 02/15/08 52 Allegiance Tel 12.875% 05/15/08 17 Amer & Forgn Pwr 5.000% 03/01/30 63 Antigenics 5.250% 02/01/25 74 Atherogenics Inc 1.500% 02/01/12 48 Atlantic Coast 6.000% 02/15/34 6 Bank New England 8.750% 04/01/99 9 Bank New England 9.500% 02/15/96 12 Bank New England 9.875% 09/15/99 9 Budget Group Inc 9.125% 04/01/06 0 Burlington North 3.200% 01/01/45 55 Calpine Corp 4.000% 12/26/06 70 Calpine Gener Co 11.500% 04/01/11 35 Cell Therapeutic 5.750% 06/15/08 74 Collins & Aikman 10.750% 12/31/11 4 Color Tile Inc 10.750% 12/15/01 0 Comprehensive Care 7.500% 04/15/10 60 Dairy Mart Store 10.250% 03/15/04 0 Decode Genetics 3.500% 04/15/11 74 Decode Genetics 3.500% 04/15/11 72 Delco Remy Intl 9.375% 04/15/12 65 Delco Remy Intl 11.000% 05/01/09 66 Delta Mills Inc 9.625% 09/01/07 17 Deutsche Bank NY 8.500% 11/15/16 68 Diamond Triumph 9.250% 04/01/08 65 Dura Operating 8.625% 04/15/12 58 Dura Operating 9.000% 05/01/09 7 Dura Operating 9.000% 05/01/09 16 Dvi Inc 9.875 02/01/04 10 Empire Gas Corp 9.000 12/31/07 1 Exodus Comm Inc 11.250% 07/01/08 0 Exodus Comm Inc 11.625% 07/15/10 0 Fedders North AM 9.875% 03/01/14 38 Finova Group 7.500% 11/15/09 22 Florsheim Group 12.750 09/01/02 0 Ford Motor Co 6.375% 02/01/29 75 Ford Motor Co 6.625% 02/15/28 75 Global Health Sc 11.000% 05/01/08 8 Golden Books Pub 10.750% 12/31/04 0 Insight Health 9.875% 11/01/11 35 Iridium LLC/CAP 10.875% 07/15/05 19 Iridium LLC/CAP 11.250% 07/15/05 24 Iridium LLC/CAP 13.000% 07/15/05 21 Iridium LLC/CAP 14.000% 07/15/05 20 JTS Corp 5.250% 04/29/02 0 Kaiser Aluminum 9.875% 02/15/02 21 Kaiser Aluminum 12.750% 02/01/03 9 Kmart Corp 9.780% 01/05/20 8 Lehman Bros Holding 10.000% 10/30/13 69 Liberty Media 3.750% 02/15/30 63 Liberty Media 4.000% 11/15/29 67 Lifecare Holding 9.250% 08/15/13 71 LTV Corp 8.200% 09/15/07 0 Macsaver Financial 7.400% 02/15/02 0 Macsaver Financial 7.875% 08/01/03 2 Motorola Inc 5.220% 10/01/97 72 Nexprise Inc 6.000% 04/01/07 0 Northern Pacific RY 3.000% 01/01/47 54 Northern Pacific RY 3.000% 01/01/47 54 Nutritional Src 10.125% 08/01/09 66 Oakwood Homes 7.875% 03/01/04 11 Oakwood Homes 8.125% 03/01/09 11 Outboard Marine 9.125% 04/15/17 0 Pac-West Telecom 13.500% 02/01/09 25 Pac-West Telecom 13.500% 02/01/09 2 PCA LLC/PCA FIN 11.875% 08/01/09 6 Pegasus Satellite 9.625% 10/15/49 0 Pegasus Satellite 12.375% 08/01/08 0 Pegasus Satellite 12.500% 08/01/07 0 Piedmont Aviat 10.250% 01/15/49 0 Piedmont Aviat 10.250% 01/15/49 0 Piedmont Aviat 10.350% 03/28/11 2 Polaroid Corp 6.750% 01/15/02 0 Polaroid Corp 7.250% 01/15/07 0 Polaroid Corp 11.500% 02/15/06 0 Primus Telecom 3.750% 09/15/10 67 Primus Telecom 8.000% 01/15/14 73 Radnor Holdings 11.000% 03/15/10 0 Railworks Corp 11.500% 04/15/09 0 Read-Rite Corp 6.500% 09/01/04 0 RJ Tower Corp. 12.000% 06/01/13 9 SLM Corp 5.000% 12/15/28 73 SLM Corp 5.400% 03/15/30 75 Spacehab Inc 5.500% 10/15/10 52 Times Mirror Co 7.250% 11/15/96 72 Tom's Foods Inc 10.500% 11/01/04 2 Tousa Inc 7.500% 01/15/11 74 Tousa Inc 7.500% 01/15/15 70 United Air Lines 8.390% 01/21/11 0 United Air Lines 9.200% 03/22/08 52 United Air Lines 10.110% 12/31/49 0 United Air Lines 10.125% 03/22/15 52 US Air Inc. 10.550% 01/15/49 0 US Air Inc. 10.680% 06/27/08 14 US Air Inc. 10.700% 01/15/49 0 US Air Inc. 10.800% 01/01/49 0 US Air Inc. 10.900% 01/01/49 0 USAutos Trust 2.212% 03/03/11 7 Vesta Insurance Group 8.750% 07/15/25 4 Werner Holdings 10.000% 11/15/07 3 Westpoint Steven 7.875% 06/15/08 0 Wheeling-Pitt St 5.000% 08/01/11 70 Wheeling-Pitt St 6.000% 08/01/10 70 Winstar Comm Inc 10.000% 03/15/08 0 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, John Paul C. Canonigo, Sheena Jusay, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***